The Hindu Business Line : Cardamom higher on supply woes

Kochi, Aug. 2 Cardamom prices ruled high at the auctions held in Kerala and Tamil Nadu during the week even though it had shown a decline from that of the previous week.

North Indian dealers and exporters were absent. But, buyers from Chennai and Bangalore were active and covered to meet their immediate demand. Exportersabstained as the prices were at higher levels, market sources said.

Officially, the cardamom season begins on August 1 and hence, the auction on Wednesday in Kumily conducted by the Cardamom Processing and Marketing Company (CPMC) was the season’s first auction. Total arrivals remained at 22.95 tonnes of which 21 tonnes were sold. The average price stood at Rs 392.33 a kg, Mr P.C. Punnoose, General Manager, CPMC, told Business Line. He said out of the total arrivals only 4 tonnes of the commodity were fresh crop.

The maximum price was Rs 489 a kg. Bulk was fetching Rs 380-390. According to him, given the crop conditions in most of the plantations, normal harvesting is likely to pick up by late August or early September.

Therefore, August is going to be a dull time for the auctions.

High prices, resultant from the short supply, are keeping the North Indian buyers mainly from Delhi and Kanpur away, he said.

Heavy withdrawal

At the auction held on Tuesday, by the Header Systems in Bodinayakannur, out of the 9 tonnes of cardamom arrived only 3.5 tonnes were sold and the rest was withdrawn. The average price was Rs 388 a kg.

Trading sources said the farmers anticipating price rise in the coming days were not releasing their produce.

Total arrivals during the current season (August 1-July 31) as on August 1 stood at 23 tonnes and out of which 21 tonnes were sold and the average price was at Rs 392.33 a kg. Last year, there was no auction on this day, official sources said.

Prices of the graded varieties were AGEB Rs 500-Rs 510, AGB Rs 400-Rs 410, AGS Rs 385-Rs 395 and AGS 1 Rs 360-Rs 370 a kg.

Prices in the local market in Bodinayakannur were AGEB Rs 460-Rs 470, AGB Rs 385-Rs 395, AGS Rs 375-Rs 385 and AGS 1 Rs 350-Rs 370 a kg. Bulk was fetching Rs 450-Rs 500 a kg.

The weather conditions at present are favourable. However, the damages inflicted by the protracted dry spell this year followed by the gale and heavy rains after the onset of the Southwest monsoon, are expected to bring down the total output this season, growers claimed.