The Hindu Business Line : Mixed trend in cardamom

Cardamom prices witnessed a mixed trend at auctions held in Kerala and Tamil Nadu during the week. New crop fetched higher prices while that for the capsules from the previous crop declined.

Kumily sale

At Wednesday’s auction in Kumily by the Cardamom Processing and Marketing Company (CPMC), out of the 23.5 tonnes arrivals 60 per cent belonged to the fresh crop. Prices of it increased by Rs 25-30 a kg while the prices for the previous crop dropped by Rs 15-20 a kg and 22.5 tonnes were old. Maximum price fetched was Rs 504 a kg while minimum Rs 198 a kg.

Good colour 8mm capsule was sold at Rs 550-570 a kg; 7-8mm fetched Rs 450-475 a kg while current bulk was sold at Rs 375-390 a kg.

As consuming season begins in North India on account of Ramzan and Deepavali, buyers are expected to be active from next month.

Export enquiries have also started floating in view of the ensuing Ramzan, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

Carryover stocks

At the auction held by the Header Systems in Nedumkandam where much of the arrivals were from the carryover stock and, hence, the prices were weak, trading sources said.

After the launching of the e-auction at Bodinayakannur on August 23, STCL has conducted the auction on Thursday using the new system there. The arrivals stood at 10 tonnes. Besides, CPA would also conduct e-auction there on Monday.

More e-auctions

The Spices Board has, meanwhile, asked other auctioneers to explore the possibility of conducting e-auctions at Bodinayakanur soon or create the necessary infrastructure for holding e-auction at their respective centres as early as possible.

On MCX, cardamom contracts during the week (Thursday-Friday) registered a turnover of Rs 86.84 crore, open interest of 1,623 tonnes and volume of 388 tonnes. The August contract was down 1.73 per cent at Rs 512 per kg.

As the weather conditions in the major cardamom growing regions in Kerala’s Idukki district have been favourable it is likely that there could be some improvement in the crop in the coming months and it might last till Nov.

Picking of the current crop has started after mid-Aug and it might reach full swing by middle of September. The plantations are receiving now light showers with intermittent sun shine and that would help extend the current crop season. This phenomenon might bring down the extent of decline in the current crop which was projected earlier to 30 to 50 per cent.