The Hindu Business Line : Cardamom prices decline

Kochi, Aug 13 The cardamom prices have witnessed a declining trend last week at auctions held in Kerala and Tamil Nadu on increased arrivals. The average price dropped to Rs 580 a kg last week from Rs 600 in the previous week. The average price on Monday, the first day of the current week, at the Cardamom Planters’ Association (CPA) auction held in Bodinayakkanur, also dropped to Rs 561 a kg from the Sunday’s average of Rs 580.

The total arrivals here stood at nine tonnes and the entire quantity was sold. Maximum price was Rs 622 a kg and the minimum, Rs 320. There was no export buying. The market has shown a declining trend, Bodi market sources told Business Line.

The buyers now anticipate the crop to be better in the coming days as the growing areas have started receiving good rains. As a result, the arrivals from August to October might improve and there could be an equilibirium between demand and supply, they said.

Quality

Add to this, the overall quality of the capsules, because of the erratic weather conditions so far this year, has not been good and that too contributed to the decline in price.

Besides, the availability of 7-7.5 mm fast green good size cardamom is limited. This is the variety normally exporters look for and its shortage appears to have negatively affected export buying. Arrival of 8 mm bold is also limited to around 500 kg or less at the auctions. It fetched Rs 750-800 a kg, Mr P.C. Punnoose, General Manager, KCPMC, said.

The total arrivals at the KCPMC auction on Sunday stood at 28.3 tonnes and almost the entire quantity was sold out, he said. The maximum price here was Rs 771 and the minimum was Rs 477 a kg.

According to him, in addition to the erratic climatic conditions, labour shortage has also been pointed out as a reason, of late, for the difference in the quality of the capsules and the slow arrivals. The shortage has slowed down the farm management practices at the right time.

Majority of the workers in the cardamom plantations are from Tamil Nadu and ever since the wages and employment opportunities improved there, these workers do not come to the plantations here, he pointed out. Total arrivals during the current season from August 1 have shown an increase compared with the previous season and that could be attributed to the extended summer showers this year, he said.

The arrivals as on August 10 stood at 178 tonnes as against 82 tonnes in the same period last season. Similarly, the sales were at 173 tonnes compared with 78 tonnes. The weighted average price was Rs 589.09 a kg as against Rs 401.31.Prices of the graded varieties were AGEB Rs 655-665, AGB Rs 580-590, AGS Rs 550-560, AGS1 Rs 540-550 a kg.

Prices in the local market at Bodi were AGEB Rs 635-645, AGB Rs 560-580, AGS Rs 540-550 and AGS 1 Rs 510-620 a kg. Bulk was being sold at Rs 640-700 a kg.

The current weather conditions in the growing areas are good as the region has been receiving good rains for the past few days and it is likely to improve the crop, trading sources said.