The Hindu Business Line : Cardamom rules firm on buying support

Kochi, Jan. 12 Cardamom prices continued to remain at moderately higher levels at the auctions held in Kerala and Tamil Nadu last week on good buying support despite increased arrivals.

There won’t be auctions from Monday to Thursday on account of the Pongal festival and it might be extended till Sunday if the ongoing truckers’ strike is not called off by then, market sources in Bodinayakannur told Business Line.

The buyers were active and buying, giving the impression that they were not maintaining an inventory and covering to meet their immediate requirements. The arrivals were at higher levels compared to last season.

Total arrivals as on January 8 stood at 5,380 tonnes against 3,177 tonnes in the same period last season registering an increase of 2,203 tonnes. Similarly, the sales also went up by 2,093 tonnes during the current season up to last Thursday to 5,064 tonnes from 3,971 tonnes in the same period last season.

The weighted average price during the current season stood at Rs 525.15 a kg as against Rs 461.49 a kg last year when there was a squeeze in supply due to poor crop.

Export buying has been at negligible levels due to higher prices, according to Mr P.C. Punnoose, General Manager, CPMC. He said arrivals at the Sunday auction of the KCPMC stood at 54 tonnes and the entire quantity was sold out. The average price also moved up to Rs 455 a kg from Rs 445 a kg on Wednesday at the CPMC auction, he told Business Line.

The maximum price was Rs 577.50 and minimum Rs 273 a kg, he said. The traders have demanded suspension of the auctions this week in view of the four-day Pongal holidays and the truckers’ strike, he said. This has led to a bullish sentiment in the market, pushing up the prices.

Prices of graded varieties as on January 10 were (in Rs/kg): AGEB 500 – 515; AGB 460 – 465; AGS 440 – 445, AGS1: 400 – 410 a kg. Prices in the local market at Bodinayakannur were: AGEB 535 – 545; AGB 450 – 460; AGS 420 – 430; and AGS1: 390 – 400 a kg. Current bulk was being sold at 500 – 575 a kg.

The weather conditions prevailing, at present, in the growing areas are favourable and the growers, who are enthusiastic with the “reasonable prices” consecutively for the second year, are of the view that if the area received a couple of showers in January, the late crop would be better. They are practising intensive farm management practices this year and that in turn would result in a better crop next season provided there are few summer showers, growers’ sources said.