The Hindu Business Line : Cardamom prices drop Rs 100/kg in a month

The individual average price which was ruling above Rs 620 a kg on September 28, about three weeks ago, declined to Rs 513.91 a kg on Thursday at the STCL auction held in Bodinayakannur.

The maximum price was Rs 626.50 and the minimum Rs 359.50. Arrivals increased to 60 tonnes and of it, only 47 tonnes could be auctioned as the traders had left the hall after 5.30 p.m. beyond which they were not ready to sit, market sources told Business Line. There was a withdrawal of six tonnes, while seven tonnes of the commodity had to be carried forward to the next auction.

The auctions on Tuesday last also faced a similar situation. Two auctions are held on this day and the pooling used to be huge. In the morning session, Heddar Systems had 44 tonnes of cardamom, while in the afternoon auction conducted by the South Indian Green Cardamom Company (SIGCC) it was 45 tonnes. Both the auctioning companies could not sell all the lots within the stipulated time.

“If some solution to this problem is not found the farmers will suffer,” a major grower said. The traders are reluctant to participate beyond 5.30 p.m., he said. At both the auctions on Tuesday, which was being held in Vandanmettu and shifted to Bodi for the convenience of the traders, the arrivals used to be higher almost always, he said. Therefore, it would be better to club one of the auctions with the one, which used to have thin arrivals every week, trading sources told Business Line.

The issue has been taken up with the Spices Board already and its decision is awaited, they said. Board sources said they were studying the issue and would come out with a suitable solution.

The arrivals and the sales during the current season have shown a significant increase. As on October 15, total arrivals stood at 2,167 tonnes as against 1,209 tonnes during the corresponding period last season. The sales also went up to 2,007 tonnes from 1,140 tonnes. The weighted average price remained at Rs 603.88 a kg compared to Rs 409.93 on October 15, last year.

The need for money for the ensuing Diwali festival on the one hand and the declining trend in the prices on the other appears to have compelled the growers to sell what ever they could harvest, trading sources in Kumily and Bodi said.

The prices of graded varieties also fell by around Rs 20 -25 a kg, as on October 17 were AGEB Rs 660-670, AGB Rs 580-590, AGS Rs 555-565, and AGS 1 Rs 515-525 a kg. Prices in the open market in Bodi were AGEB Rs 650-660, AGB Rs 560-570, AGS Rs 540-570, and AGS 1 Rs 500-510. Bulk was being sold at Rs 525 to Rs 775 a kg.

Exporters are said to have orders from selected markets overseas for the Indian produce for the winter season. They are therefore, expected to enter the market following the decline in prices.

The weather conditions continues to remain favourable

Related Stories:
Cardamom prices rule higher on domestic demand