Cardamom arrivals drop as sellers hold back

Cardamom market ruled steady with demand and supply keeping up with one another last week at auctions.

Total arrivals declined, while demand was also low. Consequently, prices remained nearly steady at previous week's levels.

Individual auction average prices vacillated between Rs 715 and Rs 800 a kg. Upcountry demand was slowly picking up, while export buying has yet to pick up, market sources in Bodinayakannur said.

Exporters bought an estimated 20-25 tonnes last week. Weakening of the rupee is expected to push up the demand from overseas, they claimed.

Trade sources attributed the decline in arrival to the downward trend in prices. According to them, when prices drop below Rs 800 a kg sellers regulate the release to sick and inferior quality material.

Stocks held back

Arrivals in the open market were qualitatively inferior, they said. At the same time, many in major markets are said to be holding stocks and that may be one of the reasons for the slowdown in purchases, they claimed.

However, the new crop is expected to arrive in August and hence, there will be an extended lean period, they pointed out.

At Monday auction in Bodinayakannur, total arrivals stood at 18 tonnes and of this 14 tonnes were sold out.

The quality of the material was inferior. The average price dropped to Rs 687.13 a kg from Rs 716.70 a kg last week, auction sources said.

The market in Bodinayakannur was steady with some export and upcountry buying interest, Mr Renganathan, a trader told Business Line. Arrivals at the Sunday auction stood at 48.5 tonnes against 76.6 tonnes the previous Sunday and almost the entire quantity was sold out. Maximum price yesterday was at Rs 1,235.50 a kg, while the individual auction average was at Rs 734.18 a kg down from 776.57 a kg the previous Sunday, Mr Punnoose, General Manager, CPMC said.

Total arrivals during the current season ( August 2011 to June 3, 2012) were at 18,559 tonnes and the sales at 17,854 tonnes against 10,544 tonnes of arrivals and 10,274 tonnes of sales in the same period last year.

Weighted average price as on June 3, 2012, was at Rs 633.14 a kg against Rs1,039.27 a kg on the same date last year, according to market sources.

Official prices of graded varieties on Monday in rupees per Kg were: AGEB 1,100 -1,110 ; AGB 785 – 795; AGS 755 - 765 and AGS 1: 735 – 745.

Good colour 8-mm bold cardamom was fetching prices Rs 1,250-1,300 a kg today, Bodi trade sources said.

Prices of other grades there today in Rs/kg were: 7-8 mm (AGEB) 1,000-1,050; 6-7 mm (AGB) 770-780; 5-6 mm good quality (AGS) 745-755 and 4-5 mm (AGS 1) Rs 725 – 735.

Weather conditions in the growing areas were dry. The growers are eagerly waiting for the onset of southwest monsoon which is expected to hit the state on Wednesday, some of the growers in Idukki said.

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