The Hindu Business Line : Cardamom steady on buying support

Kochi March 22 The cardamom market continued to rule steady on good buying support and decline in arrivals during the week at auctions held in Kerala and Tamil Nadu.

Compared to last year there has been a decline of about 1,000 tonnes in arrivals so far at the auctions.

The harvesting has almost come to an end, and what is coming to the market is from the commodities held by the growers, market sources told Business Line.

The prices might have moved up but for the financial tightness because of the fiscal year-end, they added.

According to them, the market would improve from mid-April as exporters are getting orders from overseas for April/May shipments.

Besides, domestic demand is expected to remain good due to the tight supply position expected in the coming months, as the gap between the current season-end and the new crop arrival is likely to be more.

Add to this, the arrivals from Guatemala are also said to be very thin.

At the major auction in Kumily on Wednesday, conducted by the Cardamom Processing and Marketing Company (CPMC), arrivals stood at 44 tonnes and the entire quantity was sold out.

North Indian buyers, especially those from Delhi, were active, said Mr P.C. Punnoose, General Manager, CPMC.

Exporters have also shown signs of interest; they bought five tonnes on Wednesday.

The highest price fetched was Rs 485 a kg. 8 mm colour was being sold at Rs 425-450, while 7 mm sold at Rs 390-420. Current bulk with good colour fetched Rs 350. The average price stood at Rs 340.

The total arrivals during the current season up to March 20 stood at 6,660 tonnes against 7,610 tonnes in the corresponding period last season.

The sales were 6,214 tonnes compared to 7,103 tonnes earlier.The weighted average price moved up to Rs 303.67 a kg from Rs 218.45.

The average prices of graded varieties as on March 17 were: AGEB Rs 425-435, AGB Rs 335-345, AGS Rs 320-330 and AGS 1 Rs 285-295.

Prices in the local market in Bodinayakannur on Thursday were: AGEB Rs 380-390, AGB Rs 320-330, AGS Rs 300-310 and AGS 1 Rs 275-285.

Current bulk fetched Rs 300-350.

In the plantations with no irrigation facilities, the plants have started falling due to the continuous dry spell.

If there are no rains in the next 10 days, there will be heavy damages to the plants even in the irrigated areas, said planters' union sources.

Picking of the current crop is almost over because of the prevailing drought conditions, they added.