The Hindu Business Line : Cardamom prices recover as arrivals decline

The decline in arrivals is attributed to the improvement in prices, as growers are said to have held back their produce following fall in prices last week.

G.K. Nair

Kochi, Oct. 21 Cardamom prices, which fell sharply at auctions held in Kerala and Tamil Nadu mid last week, recovered marginally on Sunday on regulated supply.

At the Sunday auction held by the Kerala Cardamom Processing and Marketing Company Ltd (KCPMC) at Vandanmettu, the average price increased to Rs 565 a kg from Rs 515 last Thursday.

The decline in arrivals is attributed to the improvement in prices, as growers are said to have held back their produce following fall in prices last week. Because of favourable weather conditions, the crop so far has been good, and this is evident from the increased arrivals and sales.

As the prices have been ruling high, the dealers are said not to be holding inventory and buying only what is needed to meet their immediate requirement.

Exporters active

Exporters were active on Sunday and bought 3.5 tonnes of the commodity, while on Wednesday last, they purchased 4.5 tonnes, Mr P.C. Punnoose, General Manager, Cardamom Processing Marketing Company (CPMC), told Business Line.

He said this was the time for the arrival of good quality cardamom and hence, orders were said to be coming from selected end-users in pockets in Saudi Arabia and other Gulf markets. The upcountry buyers were also active, buying to meet their requirements for the festivals and the marriage season in North India, he said.

The major problem faced by the growers, of late, is that they are compelled to carry forward part of the pooled lots at the auctions because of the huge arrivals on the one hand and the limited time available on the other with the auctioneers. This has resulted in large quantities of cardamom remaining unsold and that has also depressed the market, some of the growers said.

Since Diwali buying has come to an end, arrivals have reduced in recent days, they said.

Impact of rains

The cardamom-growing regions in Kerala’s Idukki and Wayanad districts have received heavy rains during the past one week, ever since the onset of the North East Monsoon, they said, adding that it would help improve the late crop this season.

However, shortage of labour and non-availability of enough quantity of fertilizers were the two major factors, of late, negatively affecting the cardamom plantations, growers added.

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