The Hindu Business Line : Cardamom drops on poor buying support

Exporters and major domestic players abstained from buying probably because of the high price. Besides, more than 80 per cent of the arrivals were from the last season’s stock held by growers and some dealers.

Auctioneers, who had commenced auctions early this month, are likely to continue with the auction as they believe that it would help liquidate the old stock. Very little quantity is arriving from the new crop as there is not much for harvesting, which might pick by mid-August, market sources said.

At the auction held in Kumily by the Cardamom Processing and Marketing Company (CPMC), 24 tonnes of the spice arrived and 23 tonnes were sold. However, the prices declined from that of the previous auction. The average price stood at Rs 389.87 a kg. The maximum price of Rs 530 a kg was fetched by 8mm bold from fresh crop. Prices of other varieties were 8mm Rs 500-525, 7.5 mm Rs 450–475 and 7mm Rs 400–455 a kg. Bulk was sold at Rs 380–380 a kg, Mr P.C. Punnoose, General Manager, CPMC, told Business Line. “About 80 per cent of the arrivals belonged to the previous crop,” he said.

During the previous season picking had commenced from May-end last year whereas the situation has changed this year because of the six-month long drought. Harvesting is expected to start only by mid-August and the crop is estimated to be less, he said.

Total arrivals as on July 25 stood at 8,336 tonnes against 9,792 tonnes as on July 19, 2006 on which date the last auction of the previous season was held. Auctions resumed on August 2, 2006, official sources said. The sales as on July 25 this year stood at 7,659 tonnes against 9,149 tonnes last season. The weighted average was at Rs 315.16 a kg against Rs 215.28 the previous season, according to official sources.

Prices

Prices of graded varieties as on July 25 were AGEB Rs 515–525, AGB Rs 430–440, AGS Rs 415–435 and AGS 1 Rs 385–400 a kg. Prices in the local market in Bodinayakannur were AGEB Rs 480–500, AGB Rs 400–410, AGS Rs 390–400 and AGS 1 Rs 350–370. Bulk prices were at Rs 450–500 a kg.