The Hindu Business Line : H1 cardamom exports up despite high prices

Kochi, Oct 28 Exports of cardamom (small) increased during the first six months of the current fiscal despite substantial increase in the commodity’s price.

Similarly, the domestic dealers have also been actively buying so far during the current season which began from late June because of the extended summer showers despite the prices are ruling higher.

Reasons for such a scenario are short supply from the only other source, Guatemala, on the one hand and its inferior quality on the other. It has paved way for an increase in Indian exports of cardamom. Total shipments during April- September this year stood at 215 tonnes valued at Rs 13.59 crore at a unit value of Rs 631.86 a kg. There is also a consumer preference for the Indian produce due to its superior quality and aroma from selected pockets in Saudi Arabia, Spice Board sources told Business Line. During the same period last fiscal the exports stood at 195 tonnes valued at Rs 7.83 crore and the average unit value realised was Rs 402.13 a kg. The average unit value realisation during April-September increased by Rs 229.73 a kg, they said.

It also gives the impression that the domestic dealers are not holding inventories this year probably because of the high prices prevailing from the beginning of the season. Besides, arrivals from “our competitor Guatemala” are said to be not there, trading sources said. As the demand – domestic and overseas – has been good so far during the current season, the sales have significantly increased to 2,224 tonnes from 1,288 tonnes last year. The arrivals in the current season went up by 1,038 tonnes to 2,403 tonnes as on October 21. The weighted average price stood at Rs 598.50 a kg as against Rs 409.23 a kg in the same period last year.

The prices continued its upward swing on squeeze in supply at auctions held in Tamil Nadu and Kerala so far during the week.

Arrivals at the Tuesday auctions dropped on regulated release by the major growers following the decline in the prices last week. Heddar Systems at its Tuesday morning auction had 30.6 tonnes of cardamom while the South Indian Green Cardamom Company 35.5 tonnes of cardamom in the afternoon auction at Bodinayakannur. Almost all the quantity was sold out. The average price at the morning auction was Rs 553 a kg while that in the afternoon stood at Rs 573 a kg.

At the Cardamom Processing and Marketing Company’s auction at Vandanmettu in Kerala on Wednesday the arrivals stood at 45 tonnes, of which 43 tonnes were sold out. Maximum price here was at Rs 725.50 and the minimum Rs 440.50 a kg. The average price there was Rs 555.23 a kg.

The prices, according to trading sources, have improved by Rs 40-50 a kg during the week.

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