Cardamom eases on increased arrivals

The cardamom market was nearly steady with some easier trend last week on increased arrivals at auctions held in Kerala and Tamil Nadu. However, good continued covering by exporters kept the prices nearly steady, according to trade sources.

Nearly 70 per cent of the arrivals at the auctions were of the new crop and rest from the previous crop. Demand is for new crop. However, arrival of 8mm bold capsules was at around 10 per cent only, they said.

Trade sources in Bodinayakannur told Business Line that 8 mm bold good colour was fetching Rs 1,100 a kg Tuesday.

The individual auction average, which was vacillating between Rs 700 and Rs 750 a kg at the auctions held in Kerala and Tamil Nadu during last week, has dropped to Rs 665 a kg at the CPA auction on Monday held in Bodinayakannur, because of the inferior quality of the material, they said.

Arrivals at the Sunday auction conducted by the KCPMC in Kumily declined to 58 tonnes from 76.5 tonnes on the previous Sunday, Mr P.C. Punnoose, General Manager, CPMC, told Business Line . He expected arrivals of the new crop to increase in the coming days as the picking progressed.

The maximum price fetched at Sunday auction was Rs 995 a kg and the minimum Rs 465 a kg. Individual auction average was at Rs 704 a kg, he said.

Exporters, he said, were actively covering while north Indian buyers were also buying but in small quantities. Exporters estimated to have bought about 60 tonnes last week. The early Ramzan this year coupled with non-availability of cardamom at this point of time from the lone competitor of India, Guatemala, has paved the way for good export buying. The competitive and rather viable price has also aided increased coverage, Mr Punnoose said. Export buying may continue till the end of the month, he added.

Arrivals contrary to the usual trend at this time of the year, continued to hover around 300 tonnes a week. Such heavy arrivals are also pointed out as the reason for the decline in prices in recent weeks, the sources said.

Total arrivals during the current season from August 1 to July 10, 2011 stood at around 12,206 tonnes. Of this an estimated 11,895 tonnes were sold.

Arrivals and sales in the same period of the previous season were estimated at 10,025 tonnes and around 9,810 tonnes, respectively.

Weighted average price as on July 10, was at around Rs 1,004 a kg, as against about Rs 870 a kg same day last year.

Prices were nearly steady at Kumily and Bodinayakannur on Tuesday. Prices in Kumily for graded varieties in rupees a kg were: AGEB 900-950; AGB 750-770; AGS 695-725; and AGS 1: 670-690.

Prices in the open market at Bodinayakannur in rupees a kg were: AGEB (7mm) 850 -900; AGB (6mm) 700 – 725; AGS (5mm – 6mm) 680 -700; and AGS 1: 650 - 660. Good bulk was fetching Rs 720–760 a kg.

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