The Hindu Business Line : Cardamom arrivals down, likely to pick up in Jan

Kochi, Dec 23 Arrivals at the cardamom auctions held in Kerala and Tamil Nadu during the current season so far have shown a continuous decline even as the third round of picking is about to draw to a close.

However, the arrivals are expected to increase in January as a result of good rains in October last. The capsules formed after the rains would be ready for harvesting after 90 days. However, it would not make any tangible change in the overall output which is likely to be lower by 25 to 30 per cent compared to the previous season, some of the growers in Idukki told Business Line.

Sales dip

During the current season, up to December 12, the arrivals fell by 1,019 tonnes to 2,683 tonnes from 3,702 tonnes while the sales dipped by 842 tonnes to 2,521 tonnes from 3,363 tonnes during the corresponding period last season.

Last season also witnessed a decline in output from that of the previous season. The highest ever production was recorded in 2005-06 when it stood at around 13,000 tonnes. Last season, it dropped to around 11,000 tonnes. During the current season, it is estimated to be below 10,000 tonnes, trading sources said.

Fourth round of picking will commence by this week/early January. The tight supply position has kept the prices almost steady at higher levels so far during the current season. As the prices are ruling high, upcountry dealers are said to be not keeping any inventory.

Bodi e-auction

At the e-auction in Bodinayakkanur on Thursday (December 20), the prices ruled steady. The average price there stood at above Rs 500 a kg. Total arrivals stood at 23 tonnes and almost the entire quantity was sold.

The individual average price at the Kerala Cardamom Processing and Marketing Cooperative on December 9 was the highest at Rs 541.98 a kg. The weighted average price during the current season as on December 12 stood at Rs 444.77 a kg as against Rs 303.40 a kg.

Arrivals poor

The arrivals at the Cardamom Processing and Marketing Company (CPMC)’s second e-auction at Vandanmedu on Wednesday (December 19) were only 27 tonnes as against the usual arrival of 80 tonnes during the third round of picking, Mr P C Punnoose, General Manager, CPMC, said. The maximum price was Rs 604 a kg and the minimum Rs 400.50 a kg.

The prices ruled steady. 8mm bold was being sold at Rs 550-600 while 7.5mm-8mm was fetching Rs 500-550 a kg. Bulk was being sold at Rs 520-535.

Exporters were not active. Export buying from Wednesday auction was only around one tonne. At the current price, only a few selected overseas buyers were placing orders. Elite class in Saudi Arabia buy superior quality Indian cardamom in good quantity, mainly for giving as gifts, he said.

No resale now

Domestic buyers were not very active as there is said to be no chances of immediate resale because of the unfavourable weather conditions prevailing in north India, he said.

The growing areas after a dry spell for over a month have been receiving incessant rains since last Tuesday, which is said to be good for the cardamom, growers said. This would help improve the late crop, they added.