The Hindu Business Line : Cardamom price averages above Rs 600/kg

Kochi, Oct 7 The weighted average price of cardamom remained at around Rs 600 a kg all through the current season which began in June. It stood at Rs 608.83 a kg as on October 5 as against Rs 408.01 on the same day last year.

In fact, the weighted average price has been ruling above Rs 600 during the past several weeks and despite a spurt in the arrivals. Good demand so far mainly from the upcountry markets coupled with nil inventory with dealers is pointed out as the reason for the sustained good price.

At the auction of the South India Green Cardamom Company at Bodi on Tuesday afternoon also, the average price remained at above Rs 600 at Rs 606.28, albeit below its average at last Tuesday auction.

Total quantity arrived was 48 tonnes but the entire quantity could not be auctioned for want of sufficient time as the auction begins in the afternoon after the Heddar Systems auctions in the morning. Only 36.5 tonnes of cardamom could be auctioned and balance, if allowed, would be auctioned on Thursday after the STCL auction. In case it does not happen, they may have to carry it forward to the next auction on Tuesday afternoon. The traders do not participate in the auction after 5.30 p.m.

The maximum price at the afternoon auction was Rs 729.50 and the minimum Rs 525 a kg. There was no export buying. But North Indian buyers were active as they have to cover for the Diwali demand. In the morning, arrivals at the auction held by the Heddar Systems were at 26 tonnes of which 1.5 tonnes of the cardamom was withdrawn. Maximum price was Rs 746 and minimum Rs 407 a kg. Average price stood at Rs 583 a kg.

Total arrivals during the current season up to October 5 stood at 1,762 tonnes as against 935 tonnes in the corresponding period last season. Sales were at 1,657 tonnes where it was 883 tonnes as on October 5, 2007.

Prices of graded varieties on Monday were AGEB Rs 675-685, AGB Rs 590-600, AGS Rs 570-580 and AGS1 Rs 530-540 a kg.

Bulk was fetching Rs 650-800. At the CPA auction in Bodinayakannur on Monday, the individual average price dropped to Rs 577 a kg from Rs 598.12 at the previous auction held last Monday. Total arrivals stood at 23 tonnes and of this12 tonnes of the commodity were withdrawn because of the decline in the prices.

Maximum price was at Rs 650.50 and the minimum Rs 505.50. Individual average price was Rs 577.64 a kg. Though the weighted average price continued to remain above Rs 600 a kg, the average price the farmers are getting is somewhere between Rs700 to 800 a kg this season, trading sources claimed.