The Hindu Business Line : Cardamom continues to rule high

Anticipating higher demand and a consequent further price rise, major growers and traders are said to be holding back an estimated 1,000 tonnes of the commodity.

Monthly Requirement

The monthly requirement of cardamom in the country is estimated at 500 tonnes and the demand from January to till the beginning of the next season (Aug) would be about 3,500 tonnes. With the current rate of arrival, the total requirement could not be met, they said.

The arrivals continued to remain thin and as a result the prices were ruling high. Expectations are that the demand might move up next month following change in the weather conditions in north India and that in turn might push up the prices further.

The prevailing high prices here and the fixing of import tariff value at $6 a kg plus import duty at 70 per cent, alleged to have paved the way for smuggling the commodity into the country through the borders.

STCL auction

Arrivals at the STCL auction held on Thursday in Bodinayakannur stood at 16 tonnes and the entire quantity was sold out. Prices ruled firm at higher levels. The maximum price here was Rs 656.50 and the minimum Rs 306 a kg. Average price was Rs 593.23 a kg. There was no export buying, sources said.

CPMC sale

At the auction of the Cardamom Processing and Marketing Company (CPMC) at Vandanmettu on Wednesday, the arrivals stood at 30.7 tonnes and the entire quantity was sold out. Maximum price went up to Rs 710.50 a kg and the minimum Rs 388.50 a kg. Average prices went up to Rs 602.41 a kg. 8 mm bold was fetching Rs 725-750 a kg while 7.5 mm to 8 mm was being sold at Rs 675-700 a kg. Current bulk was fetching Rs 630-650 a kg.

Exporters bought five tonnes of the commodity on Wednesday to meet their overseas demand from selected buyers in Saudi Arabia, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

In the local market in Bodinayakannur, 8 mm bold was fetching Rs 680-700 a kg, 7-8 mm bold Rs 670-680 a kg while bulk was fetching Rs 620-640 a kg.

Total arrivals during the current season up to January 6 stood at 3,117 tonnes as against 4,520 tonnes in the same period last season while sales were at 2,920 tonnes compared to 4,131 tonnes last season. Weighted average price shot up to Rs 459.05 a kg from Rs 296.46 the previous season.

The weather conditions so far remained favourable and if the growing areas received some showers in the coming days, the late crop would be good, trading sources said.

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