Cardamom loses flavour on higher arrivals

The cardamom market lost flavour last week at the auctions as arrivals increased.

Traders attributed this phenomenon to suspension of auctions for three days last week on account of national holidays.

Consequently, arrivals surged at the auctions, market sources told BusinessLine . They said that demand was also slow as upcountry dealers and traders were celebrating Navaratri and Dasara.

On Monday, too, there was no auction in Bodinayakannur due to a national holiday.

However, at the auction held by the South Indian Green Cardamom Company Ltd on Tuesday, some 90 tonnes of cardamom arrived. Yet, the market ruled firm on strong buying support, a dealer said.

Many were busy covering for the Diwali demand.

Export demand was slack as overseas demand from the Gulf and West Asian countries was slow.

The individual auction average dropped last week to between ₹700 and ₹720 a kg from ₹730-80 a week ago.

Supply of 8mm bold continued to remain thin and good colour bold capsules fetchd ₹1,000 a kg.

There was no auction on Sunday at the Kerala Cardamom Processing and Marketing Company.

Total arrivals during the season that began on August 1 stood at 3,225 tonnes against 4,382 tonnes during the same period a year ago. Sales were 3,154 tonnes against 4,189 tonnes.

The individual auction average as on October 4 was ₹720 a kg against ₹608 a year ago.

Prices of graded varieties on Tuesday in the open market in Bodinayakannur (₹/kg) were: 8mm bold (980-1000); 7-8mm (800-825); 6-7mm (700-725); below 6 mm (625).

The growing areas received good rains during the week as weather conditions remained favourable.