Cardamom gains marginally on buying interest

Cardamom prices gained marginally last week on export and domestic buying interest and some regulated supply at the auctions.

Export inquiries and domestic buying also emerged for the festival/marriage seasons, trade sources said.

From next week onwards domestic buying will pick up and exporters are also expected to cover for the overseas consumers for the festivals, they said.

Last week, exporters bought an estimated 15 tonnes of cardamom, they said.

Small and bold

Because of the high productivity, the size of the capsules was small and consequently bold size cardamom arrivals was smaller than normal at this time of the season at around 25-30 per cent, traders said. Bold eight mm capsules were also limited and it fetched Rs 850-900 a kg in Kumily, a trader said.

“Probably a regulated release coupled with emergence of some buying interest have aided an improvement in the prices last week, pushing the auction average close to Rs 600 a kg,” Mr P.C. Punnoose, General Manager, CPMC, told Business Line .

Continued shortage of workers to handle the huge quantity every week is also negatively affecting the trade, traders said. Continuous heavy rain in the growing areas in recent weeks resulted in fungus attacks and decaying of stems and that might lead to a decline in the output in the coming rounds, some in the trade pointed out.

At the Sunday auction by KCPMC, arrivals were at 74.8 tonnes against 81 tonnes the previous Sunday and the entire quantity was sold out, Mr Punnoose said.

The maximum price was at Rs 937.50 a kg and the minimum was Rs 337 a kg, while the auction average increased to Rs 578.65 a kg from Rs 543.08 the previous Sunday.

There were no auctions last Friday and Saturday last on account of Onam while the CPA auction at Bodinayakannur today will not be held due to the festival.

Fall in prices

Sharp fall in the cardamom (small) prices during the current season paved the way for an increase in exports of the commodity so far during the current fiscal.

Total shipments of it during Apr-July stood at 975 tonnes valued at Rs 91.47 crore at unit value of Rs 938.17 a kg, according to the Spices Board sources.

Arrivals

Total arrivals during the current season up to September 11 stood at 2,309 tonnes as against 1,057 tonnes in the same period the previous season.

Sales during the period were at 2,256 tonnes and 1,051 tonnes respectively. Weighted average price was at Rs 589.47 a kg while that on the same day last year was at Rs 1,299.88 a kg.

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