The Hindu Business Line : Cardamom up on buying support

The average price increased by Rs 15-20 a kg from that of last Wednesday. The average price, which was Rs 440 a kg at the CPMC auction on Wednesday, moved up to Rs 455 a kg on Sunday. The upward trend was seen despite good arrivals so far during the current season.

There appears to be a departure from the usual trend this season. During the first week of January demand usually declines because of the severe winter season in north India. But this year whatever moves out of the primary markets to north Indian centres are sold out.

As a result, the buyers were active at the auctions and were buying. Almost the entire quantity of the commodity that arrived was sold out. It gives the impression that there is good demand and the dealers are not holding any inventory with them.

On Sunday, 45 tonnes of the material arrived and the entire quantity was sold out. The maximum price was Rs 600 a kg, while the minimum price Rs 331.50. Average price was Rs 455 a kg. Current bulk was being sold at Rs 450-475 a kg. Good colour 8mm bold was being sold at Rs 600-610 a kg, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

TN purchases

Buoyancy in the market was also created by the Tamil Nadu Government’s decision to supply “spices kit” containing cardamom, pepper etc through the public distribution system. For this purpose, the Government has bought 40-50 tonnes of medium variety cardamom. Similarly, the Puducherry Government is also said to have decided to follow the same system and buy 10-15 tonnes of cardamom. This has created a positive sentiment in the market, he pointed out.

Export buying has been negligible last week probably because of the upward swing in the prices, he said.

He said the arrivals used to shrink after the heavy picking period of October/November. However, this year it has been extended to December. From this month onward it would be normal harvesting. However, the size of arrivals in the coming months would mainly depend on the summer showers. If the region received intermittent showers, then harvesting might continue almost through out the season, he said.

The weather conditions so far remained favourable and, hence, there would be picking till the commencement of the summer and thereafter it might slow down mainly confining to the irrigated plantations.

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