Cardamom prices drop on bearish sentiments

Cardamom prices declined last week at auctions held in Kerala and Tamil Nadu on bearish sentiments. North Indian buyers were slow in buying on the assumption that good quantities are held by growers and dealers and the prices would decline further once they start releasing the stocks.

Exporters bought some 15 tonnes as the prices were workable for them, market sources said.

The market is expected to become active pushing the prices up once the north Indian demand picked up in the coming days, they claimed. High prices of large cardamom is likely to push up the demand for small cardamom which is said to be currently ruling below the former, they said.

Arrivals

The present arrivals are from the current harvesting and the capsules are of medium size and that factor also kept the prices at lower levels. According to a dealer in Bodi, good colour 8mm bold was fetching Rs 1,400 a kg but its arrival is very thin. There has been a continuous decline in the arrivals as the harvesting is in the closing stages. According to growers, there will be one or two round of picking. Total arrivals during the week stood at 165 tonnes.

The individual auction average price dropped to below Rs 1,100 a kg last week. The average price at the Sunday auction dropped to Rs 1,080 a kg from Rs 1,130 a kg the previous Sunday. Total arrivals at the KCPMC auction on Sunday stood at 41 tonnes and the entire quantity was sold out , Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

According to him, the material arriving at the market, at present, is of medium size and from the current picking. “It is also one of the reasons for the decline in the current prices”, he said. Green bold capsules are being held back by the major growers who would release it only when the prices moved up to their expected levels, he said.

Total arrivals during the current season from Aug 1, 2010 to Feb 20, 2011 stood at 7,196 tonnes. Of this 7,043 tonnes were sold. Arrivals and sales in the same period of the previous season were 7,262 tonnes and 7,186 tonnes respectively. Weighted average price as on Feb 20, 2011 was Rs1,036 a kg, up from Rs 738 same day last year.

Prices for graded varieties in rupees/kg in Kumily on Monday were: AGEB 1,235-1,250; AGB 1,110-1,120; AGS 1,035-1,050 and AGS1 1,025-1,035. Prices according to trade sources in the open market in Bodinayakannur in rupees a kg were: AGEB (7mm-8 mm) 1,225-1,250; AGB (6mm – 7 mm) 1,100-1,150; AGS (5mm – 6mm) 1,025-1,050 and AGS1 1,015-1,025.

Bulk was being sold at Rs 1,000-1,150 a kg. Export enquiries were there at the current levels and some business is likely to take place in the coming days, they said.

Some of the growing areas received scattered rain fall. However, dry weather prevailed in most of the growing areas for the past couple of weeks.