Cardamom prices last week moved up on bullish sentiments at auctions held in Kerala and Tamil Nadu.
As the market showed an upward trend those holding stocks were seen releasing them, which in turn, raised the volume of arrivals, trade sources said. Upcountry buyers were seen active and that resulted in an upsurge in prices, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.
However, according to trade sources in Bodinayakannur and Tamil Nadu prices have been artificially pushed up under the influence of the bullish trend in the online trading.
Mr T. Ashok Kumar, a major grower from Cumbum told Business Line that high volatility on the exchange platform was negatively affecting the trade. Trade sources in Bodinayakannur said bold 8mm capsule was fetching Rs 1,200-1,250 a kg. Last week, arrivals increased to nearly 440 tonnes as against the below 300 tonnes the week before.
“However, there is a sentimental change in recent days in the market because of inadequate rains and a consequent possibility of poor and delayed next crop,” Mr Punnoose, said. However, coverage for the Ramzan season is yet to begin. Slackness in Ramzan buying is attributed to a possible carry over stock with stockists in the overseas market. Indian shipment of cardamom during the last fiscal was the highest ever, the trade said.
Arrivals at the Sunday auction stood at 72 tonnes as against 39 tonnes the previous Sunday. The entire quantity was sold out, Mr Punnoose said.
Maximum price yesterday was at Rs 1,208 a kg and the minimum was Rs 450 a kg. The individual auction average increased to Rs 755.57 a kg from Rs 749.46 a kg the previous Sunday, he said.
Total arrivals during the current season from August 1, 2011 up to July 15, 2012 were at 20,197 tonnes and the sales were at 19,418 tonnes as against 12,503 tonnes of arrivals and 12,190 tonnes of sales in the same period last year.
Weighted average price as on July 15, 2012 was at Rs 639 a kg as against Rs 988.49 a kg on the same date last year, according to market sources.
Official prices of graded varieties on Saturday in Rs/kg were: AGEB 1,130–1,140; AGB 830-840; AGS 810 - 820 and AGS 1: 790 - 800
The open market prices in Rs/kg in Bodinayakannur on Monday were: AGEB 1,050–1,100; AGB 800-810; AGS 780–790; AGS 1-750 - 760.