The Hindu Business Line : Cardamom slide continues

THE downward trend continued in cardamom prices in auction sales in Tamil Nadu and Kerala during the week ended Thursday. The average price has declined to Rs 334.83 a kg during the current season from Rs 402.88 a kg last season.

Up to September 22, arrivals stood at 611 tonnes, of which 575 tonnes were sold. As against this, arrivals during the corresponding period last season were 585 tonne and sales 553 tonne.

Exporters as well as the upcountry buyers have been active and yet the prices had not increased, market sources in Bodinayakkanur told Business Line. Prices of the graded varieties were as follows: AGEB Rs 395 - 405 a kg, AGB Rs 310 - Rs 320, AGS Rs 295 - Rs 305 and AGS1 Rs 265 - Rs 275 a kg.

At the Kumily auction held by the Cardamom Processing and Processing Company (CPMC) on Wednesday, 8 mm bold was sold at Rs 450 - Rs 480 a kg while 7mm at Rs 370 - Rs 400 and bulk Rs 350 - Rs 360.

Almost all the arrivals were sold, Mr P.C. Punnoose, General Manager, CPMC said. While some attributed the declining trend to the presence of old stock in the arrivals, others said it was due to low prices quoted in the futures trading.

According to the Ahmedabad-based National Multi-Commodity Exchange of India Ltd, there has been a mismatch between existing stock of cardamom in warehouses and a number of open positions two months ago.

They said insufficient participation of different stakeholders had also allowed the price to go southward. There is a feeling in the market that the quality of cardamom lying with CWC cannot be sold as AGB because of fading colour, they said

Besides, "this season, the market expects a better crop culminating in stock clearance by farmers as well as traders."

However, according to official sources, the overall production of cardamom this season is expected to be less by 20 to 25 per cent because of severe drought early this year. Replanting was going on in these areas, they said.