The Hindu Business Line : Poor arrivals continue to dog cardamom auctions

Kochi, Nov. 30 Decline in arrivals of cardamom at the auctions held in Kerala and Tamil Nadu during the current season have led to a total drop of 830 tonnes to 2,306 tonnes as on November 28 against 3,136 tonnes in the previous season.

The sales have also fallen to 2,178 tonnes from 2,820 tonnes last season. The weighted average price has shot up by Rs 118 a kg to 430.21 during the current season from Rs 312.86.

The arrivals last season also remained far below than that of the previous season. Thus, it is for the second season that the output has been showing a decline.

The squeeze in arrivals appears to have motivated the dealers/traders to buy actively from the auctions so far during the season and that in turn has kept the prices stable at higher levels, market sources told Business Line.

The individual average price at the auctions held during the week dwindled between Rs 520 to Rs 540 a kg.

The highest price of Rs 639 a kg during the current season was fetched at the Sunday auction in Kumily. At the e-auction held by STCL at Bodinayakannur on Thursday arrivals stood at 28 tonnes and almost the entire quantity was sold out. Maximum price was Rs 593.50 and the average price was Rs 529.62.

At the Wednesday’s auction held in Kumily by the Cardamom Processing and Marketing Company (CPMC), about 56.7 tonnes of cardamom arrived and the entire quantity was sold out, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

He said last year this time the arrivals ranged between 70 tonnes and 80 tonnes.

Bulk cardamom

About 60 per cent of the bulk cardamom comprised of 7-8 mm capsules and as a result it was fetching Rs 500 to Rs 520 a kg, he said.

Exporters bought 9 tonnes of cardamom on Wednesday while on Sunday it was 6 tonnes. There are selected overseas buyers at the current price, he said.

Prices of graded varieties were AGEB Rs 590–600, AGB Rs 540–550, AGS Rs 520–530 and AGS 1 Rs 500–510 a kg.

Prices in the local market at Bodinayakannur were AGEB Rs 560–570, AGB Rs 510–520, AGS Rs 490–510 and AGS 1 Rs 470–500. Bulk was fetching Rs 560-600 a kg.