The Hindu Business Line : Cardamom prices up on domestic buying support, short supply

Prices of running bulk at the auction held by the Cardamom Processing and Marketing Company (CPMC) at Kumily on Wednesday increased by Rs 10 to Rs 15, while that of bold varieties by Rs 20 to Rs 25 a kg, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

He said the 8 mm bold fetched the highest price of Rs 415 a kg, while 7 mm Rs 195-220 a kg and sick variety Rs 150-175 a kg. Arrivals at the auction stood at 48.5 tonnes and almost the entire quantity was sold. Exporters were absent. However, north Indian buyers were active, he said.

He said the average price was Rs 225 a kg during the current season (as on January 25) against Rs 313 a kg in the previous season.

`Raise consumption': According to trading sources in Kumily and Bodinayakannur, the only way to ensure a remunerative price to cardamom growers is by raising the consumption. They said the Spices Board should initiate steps to find out its potential use in other applications such as pharmaceuticals and cosmetics.

Mr Punnoose said the CPMC is trying to work on such concepts.

Some of the growers in Kerala's Idukki district, the main cardamom growing area in the country, said the prices prevailing in the current season were below remunerative levels for those having plantations with an average yield of 300 kg per acre. However, for those planters with high-yielding plantations with over 700 kg/acre the current prices might be remunerative.

They said the prices started declining from 2003-04. The average price, which was ruling at around Rs 500 a kg during 1998-99 to 2002-03 dropped to around Rs 300 a kg in 2003-04 and 2004-05 and to Rs 205/kg in the current season (2005-06).

The increase in production in 2005-06 is mainly because of the favourable weather conditions that prevail in the growing areas. A drop in prices would result in the farmers having no surplus to plough back and that in turn will lead to the neglect of plants this year. This might affect the crop next season, the growers claimed.