The Hindu Business Line : Cardamom drops on heavy arrivals

The average cardamom price after dropping below Rs 600 a kg last week picked up on Sunday and moved up to Rs 620 a kg last Sunday. However, it declined on Monday at the CPA auction at Bodinayakannur.

Heavy arrivals because of the peak harvesting season coupled with liquidity crunch forced the prices at the auctions held in Kerala and Tamil Nadu to drop last week, trading sources told Business Line.

As a result, the average price on last Thursday, Friday and Saturday fell to Rs 590 a kg.

At the CPA auction on Monday, the average price declined to Rs 598 a kg.

Total arrivals were 13 tonnes and the entire quantity was sold out.

North Indian buyers were active. However, there was no buying by the exporters as they appeared to be keeping away because of the high prices, trading sources in Bodi said.

The maximum price at Monday’s auction was Rs 698 and minimum was Rs 518.50 a kg.

Because of the good price all the growers are picking the maximum and selling the entire quantity.

There is a good demand as the dealers do not appear to have any inventory.

“In fact, the market is active and aggressive as the Diwali purchase is still on”, Mr P.C. Punnoose, General Manager, CPMC Kumily, told Business Line.

Arrivals

Total arrivals on Sunday at the KCPMC auction at Vandanmettu stood at 34 tonnes and the entire quantity was sold out.

The maximum price was Rs 774 a kg and minimum Rs 470 a kg. The average price was at Rs 620 a kg. There was no export buying, probably because of the higher prices, he said.

Total arrivals during the current season up to September 28 stood at 1,550 tonnes as against 794 tonnes in the same period last season.

Total sales were at 1,454 tonnes where as it was 749 tonnes as on September 28, 2007.

The weighted average price also remained at Rs 606.65 a kg as against Rs 407.58 a kg last season.

Prices of the graded varieties were: AGEB Rs 680-690, AGB Rs 600-610, AGS Rs 575-585, and AGS1 Rs 535-545 a kg.

Prices in the open market in Bodi were AGEB Rs 665-675, AGB Rs 585-595, AGS Rs 560-570 and AGS 1 Rs 520-530 a kg. Bulk was fetching Rs 550-700 a kg.

Arrivals at other auctions during last week were heavy and yet the prices remained at higher levels on good demand, market sources in Bodinayakannur said.

Total volume arrived at various auctions from last Monday to Sunday was at 236 tonnes.

They attributed the increase in arrivals to the suspension of harvesting recently when the workers went on an indefinite strike.

According to them, the current prices are likely to remain with the average price swinging between Rs 600 and Rs 620 a kg.

Meanwhile, growers said shortage of fertilisers and labour has been affecting the plantations.

“The present generation in Kerala is not interested to work in the estates as majority of them are educated and aspire for comfortable jobs”, they said.