The Hindu Business Line : Weak buying support drags down cardamom

The individual average prices fell by over Rs 50 a kg during last week from that of the previous week. The reasons attributed to the gradual decline included no sales in the upcountry markets, entry of Guatemala cardamom in the north Indian markets and withdrawal of buyers anticipating an early next crop because of the recent rains in the growing areas. Because of the declining trend buyers are keeping away from the market, trading sources told Business Line.

Prices dropped despite continuous thin arrivals with 5-7 tonnes at four auctions, while it was 27 tonnes on Wednesday, 14 tonnes on Thursday and 28.4 tonnes on Sunday.

The maximum price at KCPMC auction on Sunday was Rs 619 a kg and minimum Rs 385. Average price dropped to Rs 533 a kg. Arrival of 8 mm bold was negligible and it was fetching Rs 620–630 a kg.

Good bulk was sold at Rs 530–535 a kg. Exporters bought six tonnes of the capsules on Sunday, Mr P.C. Punnoose, General Manager, KCPMC, told Business Line. The market is waiting for the Holi sales by the month-end, he said.

Below indigenous price

According to market sources in Bodinayakannur, Indian cardamom is reportedly being offered at $17.5 a kg while Guatemala is offering at $14 a kg. The landed cost, even after paying the duties, remained far below the indigenous price and hence the imported stuff is arriving in the north Indian markets. Even the imported cardamom finds its way into the auctions in Karnataka, they alleged.

Total arrivals at auctions during the week as on March 7 stood at 3,971 tonnes against 6,375 tonnes on March 8, 2007 while sales were at 3,693 tonnes against 5,859 tonnes. The weighted average price stood at Rs 488.73 a kg against Rs 302.83 in the corresponding period last year.

Prices of graded varieties as on March 8 were AGEB Rs 640–650, AGB Rs 570– 580, AGS Rs 550–560 and AGS 1 Rs 530–540 a kg. Prices in the local market in Bodinayakannur on Sunday were AGEB Rs 620–630, AGB Rs 550–560, AGS Rs 530–540, AGS 1 Rs 510–520 a kg and bulk was being sold at Rs 550–600.

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