The Hindu Business Line : Demand keeps cardamom firm

The average cardamom prices vacillated between Rs 670 and Rs 710 a kg during last week at auctions held in Kerala and Tamil Nadu and good demand despite heavy arrivals.

In fact, the arrivals at the KCPMC auction on Sunday at Vandanmettu were the highest with 75 tonnes, ever since the commencement of e-auction in December 2007, Mr P. C. Punnoose, the General Manager, CPMC told Business Line. He said that the turnover on Sunday, of Rs 5 crore was the highest in the company’s auction history of 23 years.

Prices rule firm

Buyers both domestic and export were active. Around 35 to 40 tonnes of cardamom was bought by exporters. North Indian buyers were covering for their requirements for the winter. They were actively buying on the apprehension that the prices might go up further in the coming days due to a likely squeeze in supply once the peak harvesting season gets over.

That is the reason why the market ruled firm even when the arrivals on Sunday was at 75 tonnes, Mr Punnoose said. Price difference between the general grade and the superior variety has narrowed down.

Current bulk was fetching Rs 690 to Rs 720 and hence 8 mm variety is held back by growers, traders said. On Sunday, 800 mm bold arrival was at 500 kg. The average price on Sunday was Rs 675 a kg.

On Monday the arrivals stood at 25 tonnes and the entire quantity was sold out. The average price moved up to Rs 685 a kg.

At the Tuesday forenoon auction of the Heddar Systems at Bodinayakannur the arrivals stood at 46 tonnes and the entire quantity sold out on good buying support both by exporters and domestic dealers. Average price moved up to Rs 699.74 a kg from the Sunday average.

In the afternoon auction of South India Green Cardamom company (SIGC) arrivals were at 55 tonnes and there was no withdrawal. The average price was at Rs 703.35 a kg. Around 26 tonnes of cardamom was bought by exporters, Mr T. Ashok Kumar of SIGC told Business Line. Total arrivals during the current season from August 1 – November 1, 2009 stood at 3,048 tonnes and of this 2,984 tonnes of cardamom were sold. During the same period the previous season arrivals and sales were at 2,620 tonnes and 2,432 tonnes respectively.

The weighted average price as on November 1, 2009 stood at Rs 681.11 a kg as against Rs 593.83 a kg on the same day last season.

The weather conditions remained unfavourable as the onset of North East monsoon has been delayed, growers said.

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Demand keeps cardamom firm