The Hindu Business Line : Cardamom prices low on higher arrivals

Cardamom arrivals at the auctions continued to be on the higher levels even during the lean period unlike in the past indicating that the harvesting might continue through to May/June.

Arrivals at the auction on Wednesday at Kumily stood at 53 tonnes. The situation at other auction centres was not different. The total arrivals during the current season up to April 4 at the Kerala and Tamil Nadu auctions stood at 8,000 tonnes as against 4,218 tonnes last season. Sales during the current season were at 7,468 tonnes (3,909 tonnes) The average price this season was Rs 217.21 a kg compared to Rs 304.64 a kg. The heavy supply position has kept the prices at lower levels. The graded varieties, AGEB is being sold at Rs 300-310 a kg; AGB at Rs 215-220; AGS Rs 195-205 and AGS1 Rs 185-195.

Prices at the local market in Bodinayakannur on Thursday were AGEB Rs 280-290, AGB Rs 190-200, AGS Rs 180-190 and AGS 1 Rs 170-180. Bulk was fetching Rs 180-230 a kg. North Indian buyers, though said to have huge inventory, were active and buying.

Exports

Export buying has not been encouraging. At the Wednesday auction of Cardamom Processing Marketing Company (CPMC) at Kumily, a Virudunagar-based exporter bought four tonnes of cardamom.

According to export sources, the buyers in the overseas markets seem to have gone to Guatemala, which has been offering lower prices than India.

Arrival of 8 mm bold was thin with 400 kg at the CPMC auction. The maximum price fetched was Rs 391 and the minimum Rs 114 a kg, Mr P.C. Punnoose, General Manager, CPMC, said.

According to him, the weather conditions prevailing in the growing areas have been so far good. Hence, harvesting might continue till May-end, he said.

The prices during the current season have remained far below remunerative levels. However, the good crop has compensated the farmers to some extent, trading sources pointed out.