The Hindu Business Line : Cardamom prices drop on heavy arrivals

Kochi, Nov. 17 Heavy arrivals at the auction held in Tamil Nadu and Kerala last week pushed down the cardamom prices with the average price dropping to Rs 500 a kg on Sunday from Rs 535.48 a kg on November 10.

The total arrivals during the week from November 9 to 15 were 292 tonnes.

Arrivals during the current season as on November 16 were at 3,252 tonnes against 1,965 tonnes during the same period last season.

Sales also increased to 3,042 tonnes from 1,857 tonnes in the previous season.

Weighted average price as on November 16 stood at Rs 580.05/kg compared to Rs 415.48/kg on November 16, 2007.

At the auction on Monday at Bodinayakannur, the arrivals stood at 24 tonnes, of which four tonnes were withdrawn.

The maximum price fetched was Rs 536 and minimum Rs 400/kg. The average price dropped to Rs 477.21 a kg.

At the Sunday auction, held by the KCPMC, 60 tonnes arrived and almost the entire quantity was sold out.

Upcountry buyers were active. Maximum price fetched was Rs 650 and minimum Rs 280/kg.

The average price dropped by Rs 20 from that of last Wednesday to Rs 500 a kg. Bulk was being sold at Rs 500 – Rs 520 a kg.

Mr P.C. Punnoose, General Manager, CPMC told Business Line 8 mm green bold was fetching Rs 650/kg.

However, exporters were still on a wait-and-watch mode anticipating that prices would drop further due to increased arrivals as this was peak harvesting season. There was also talk of Guatemala cardamom arriving in the Indian market.

However, traders claimed that if such development had taken place then the upcountry dealers would not have been active at the auctions.

During the severe winter season, sales in the upcountry markets slowed down, as there was a decline in festival and marriage activities during this period.

The arrivals in the coming weeks may taper and that would push up the average prices and it is expected to stabilise at Rs 550 a kg.

Prices of graded varieties were AGEB Rs 605 – 615; AGB Rs 535 – 545, AGS Rs 505- 515 and AGS 1 Rs 480 – 490 a kg.

The weather conditions so far have been favourable.

Last Thursday, the Kumily region received good rains and the growers believe that there would be some showers in the coming days.

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