Cardamom prices rose further last week on supply squeeze amid good demand at auctions.

Arrivals did not pick up as the harvesting is yet to reach its peak. No carry-over stock is available in the market either. Consequently, supply continued to stay thin and the individual auction average shot up by over ₹200 a kg from the price in the corresponding period last year. They attributed the decline to erratic rains this year which has led to a delayed crop this season. On the other hand, as prices during the last couple of years were not remunerative, growers did not follow good farm management practices in the recent months due to shortage of funds. As a result, growers in Kumily and Vandanmettu region said that the yield this season is likely to witness decline of 25-30 per cent.

Exporters were seen actively and aggressively covering whatever exportable variety of capsules arrived. They bought an estimated 60 tonnes last week.

Similarly, upcountry buyers were also actively buying. At the Kerala Cardamom Processing and Marketing Company auction on Sunday, arrivals stood at 44 tonnes against 37 tonnes of capsules that arrived the previous Sunday. The entire quantity was sold.

The maximum price was ₹1,102 a kg and the minimum ₹446. The auction average increased to ₹855 from ₹789.16. During the current season of the crop, which has officially begun from August 1, arrivals were 479 tonnes against 862 tonnes during same period a year ago. Sales were 469 tonnes against 852 tonnes.

The weighted average price for this year stood at ₹801.92 a kg as against Rs601.99 as on the same date last year.

The current good bulk was fetching ₹850 a kg, trade sources in Bodinayakannur said.

Prices of all graded varieties moved up last week and they (in ₹\kg) were: AGEB 1,050 - 1,060 ; AGB 845 - 855; AGS 710 - 725 ; and AGS -1:695 - 705.

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