Agri Business

Cardamom market heads north on export demand

G.K. Nair Kochi | Updated on June 21, 2011

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The cardamom market headed north last week on good export demand and domestic buying at the auctions held in Kerala and Tamil Nadu.

An estimated 80 tonnes of the commodity were bought by exporters. The buyers are enthused by the quality of the material and the current prices, trade sources said. The bold capsules are from the October-November picking and hence in good colour while the prices are moderate and below what prevailed for the same material last year, they said.

Therefore, export purchases and despatching could continue till July-end as the current prices are viable for exporters, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

The upcountry buyers were also active. Consequently the market improved last week, he said.

According to traders in Bodinayakannur, the trend in export and domestic buying gives the impression that the market is likely to move up further marginally.

“At this point of time there is no threat from the lone competitor Guatemala as its crop would be available by September-October,” market sources claimed.

Upcountry buyers were buying small quantities, as a result of which the entire quantity of 67.8 tonnes of cardamom that arrived at the Sunday auction was sold out. The maximum price fetched was Rs 999.50 a kg and minimum Rs 465 a kg. The auction average improved to Rs 766.12 a kg, Mr Punnoose said.

Total arrivals during last week increased to over 300 tonnes from 257 tonnes the week before.

Total arrivals during the current season from August 1 to June 19 stood at 11,156 tonnes. Of this, 10,886 tonnes were sold. Arrivals and sales in the same period of the previous season were 10,450 tonnes and 10,155 tonnes respectively.

Weighted average price as on June 19, was around Rs 1,038.50 a kg, as against about Rs 832 a kg on the same day last year.

Exporters are said to be holding orders in hand and are expected to buy good quantity to meet their overseas Ramzan requirement, a major dealer in Bodi told Business Line on Monday.

Prices of 8mm bold good colour in Bodi today were at Rs 1,150 – Rs 1,200 a kg, he said.

Prices in the open market Bodinayakannur in rupees per kg were: AGEB (7mm) 950 -1,000; AGB (6mm) 750 -800; AGS (5mm – 6mm) 700 - 750 and AGS 1: 675.

Good bulk was fetching Rs 750 – Rs 800 a kg. The growing areas are receiving good rains with occasional sun shine and the overall weather condition is favourable so far for the plants and hence the next crop is likely to be good and expected to hit the market late this month, growers in Kumily said.

Published on June 21, 2011

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