The Hindu Business Line : Cardamom prices decline a tad

Kochi, July 28 Cardamom prices at auctions held during last week in Kerala and Tamil Nadu witnessed a marginal decline following good rains in the growing areas in Kerala’s Idukki district since Saturday last.

Compared with last week, the individual average prices dropped from Rs 611 to Rs 554.75 a kg on Sunday and Rs 543.58 on Monday at the Cardamom Planter’s Association (CPA) auction held in Bodinayakannur.

Arrivals there stood at seven tonnes and the entire quantity was sold out. Maximum price was Rs 609 and the minimum Rs 440 a kg, trading sources told Business Line. Upcountry buyers were active but there was no export buying. At the Sunday auction by KCPMC (Kerala Cardamom Processing and Manufacturing Co Ltd) at Kumily, 29 tonnes of the commodity arrived and almost the entire quantity was sold out. The average price stood at Rs 554.75 a kg.

According to Mr P.C. Punnoose, General Manager, KCPMC, the market sentiment has changed after the region started getting good rains. The buyers anticipate that the crop would be good and consequently expect improved arrivals in the coming days. On Sunday, exporters bought six tonnes of green bold capsules as they (were) said to have orders for small quantities from selected buyers in overseas markets, mainly Saudi Arabia.

Total arrivals during the current season up to July 27 stood at 5,753 tonnes as against 8,343 tonnes in the corresponding period last season. Sales also dropped to 5,421 tonnes from 7,665 tonnes. The weighted average during the current season was at Rs 507.15 against Rs 315.24 the previous season. Prices of graded varieties were AGEB Rs 655-665, AGB Rs 590-600, AGS Rs 560-Rs 570 and AGS 1 Rs 540-550 a kg. The prices in the local market in Bodi were AGEB Rs 635-645, AGB Rs 570-580, AGS Rs 540-550, AGS 1 Rs 520-530 a kg.

Bulk was being sold at Rs 650-680 a kg.

Mr Ashok Kumar, President, Kerala Cardamom Growers Union said that the south-west monsoon was deficient by over 50 per cent this year. There were no rains in June and till the last week of July; which has affected the crop . However, he said, the recent rains in the growing areas had brought some respite to the plants.

“If we get good rains in the coming days, it will help improve the crop. The extended summer showers had helped the crop and, we were expecting an increase of 20-30per cent in the current crop but that hope has been shattered by the decrease in the south-west monsoon in June-July in the high ranges,” he said.