The Hindu Business Line : Cardamom prices rule higher on domestic demand

Kochi, Oct. 13 Cardamom average prices were seen fluctuating between Rs 550 and Rs 600 at the auctions held in Tamil Nadu and Kerala last week on increased arrivals.

However, good demand from the domestic market has been keeping the prices at moderately higher levels so far during the current season, which, in fact, began from June last as a result of the extended summer showers this year.

Festive market

It appears that because of the higher price the dealers are not maintaining any inventory and buying only the quantity required to meet their commitments. Diwali buying has almost come to an end and if the dealers are able to sell out the entire quantity they have bought for it, there will be demand for other festivals and marriages during the winter season in north India, trading sources told Business Line.

Besides, there has been a marginal and consistent increase in the demand year after year, resulting in a mismatch between demand and supply. In recent years the national output has been low due to the vagaries of the weather.

This year, however, there could be marginal improvement in production provided the growing areas received the normal north east monsoon, they said. So far the weather conditions have been favourable and if this continues, the late crop would be good.

Arrivals at the auction of the KCPMC on Sunday stood at 54 tonnes and almost the entire quantity was sold out. The average price was Rs 597 a kg as against Rs 610 on the previous Sunday. But, it was up by Rs 17 a kg from Rs 580 a kg on last Saturday auction, Mr P.C. Punnoose, GM, CPMC, told Business Line.

Prevailing Prices

He said that there was no export buying. It seems that they are keeping away because of the high prices. Maximum price on Sunday was Rs 739 and minimum was Rs 370 a kg. Cardamoms of size 7.5 mm and above were fetching Rs 650 to Rs 700 a kg while 8-mm capsules were fetching Rs 725 to Rs 750 a kg. Clean current bulk was being sold at Rs 590 to Rs 620 a kg, he said.

Traders are of the view that the prices might decline by Rs 50 a kg. However, given the current market trend, said the market sources, “the average price might swing between Rs 550 and Rs 600 a kg” in the coming weeks.

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