The Hindu Business Line : Cardamom prices rise due to short supply

Kochi, Aug. 10 Cardamom prices during the week showed an upward trend on short supply at auctions held in Kerala and Tamil Nadu. Thin arrivals have restricted the auctions to two this week instead of seven.

At auction held by Cardamom Processing and Marketing company (CPMC) in Kumily on Wednesday the arrivals stood at 30 tonnes and almost the entire quantity was sold out. Thirty per cent of the capsules was of the current crop and balance was from the carry over stock, market sources said.

The prices improved by Rs 15 a kg. Almost 90 per cent of the traders participated and bought to meet their immediate requirements.

High prices

However, export buyers kept away said to be because of the high prices. North Indian dealers bought through their representatives.

Tuesday’s auction by the Header Systems at Nedumkandam and Thursday’s auction by STCL in Bodinayakannur were not held for want of adequate arrival.

The Kerala Cardamom Processing and Marketing Cooperative (KCPMC) would commence its auction from August 19 and would continue through out the season, Mr P.C. Punoose, General Manager, CPMC said.

The maximum price at the Wednesday’s auction was Rs 525 and the minimum Rs 200 a kg. Average price moved up to Rs 415 a kg. Eight-mm bold good colour fetched Rs 550-Rs 575 while 7mm-8mm was sold at Rs 460-Rs 475 a kg. Six-mm-7mm fetched Rs 385-Rs 400 a kg. Bulk was sold at Rs 390-Rs 410 a kg, he said.

Weather conditions

Currently, the weather conditions are good. Picking is expected to commence in full swing by next week and in that case the arrivals are likely to increase, he said.

Meanwhile, it is understood that some more cardamom auctioning centres are likely to come up in Kerala’s Idukki district. According to trading sources, auctions have been held on all seven days of the week and hence increasing the number of auctions would result in two auctions a day and that given the geographical peculiarities of the region would be difficult for the traders to participate in.

Any decision on allowing more auction centres need to be taken after considering these facts, the sources said. Besides, currently there does not seem to exist any set norms, such as the financial stability, availability of adequate quantity of the commodity in the area, and so on, while granting license to open new auction centres, they said.