Cardamom prices fall on selling pressure

Cardamom prices fell sharply last week on heavy arrivals at auctions held in Kerala and Tamil Nadu as the growers holding stocks started liquidating.

“There was an unusual selling pressure last week,” trade sources said.

Fear of further fall in prices due to prevailing favourable weather conditions and consequent early arrival of new crop is appeared to have led to a panic liquidation by medium growers and dealers of their stocks. As a result, the arrivals last week soared to around 300 tonnes.

At the Sunday auction alone, held by the KCPMC, arrivals stood at 65.9 tonnes. However, the entire quantity was sold out as exporters and upcountry dealers were covering.

Big players are said to had earlier cleared their stocks when the prices were ruling at around Rs 1,000 a kg. However, good buying support from the exporters who have orders in hand for the Ramzan, which is expected early this year, has helped the prices to hold on at the current levels, Mr P.C. Punnoose, General Manager, CPMC told Business Line .

According to the trade, an estimated 40 tonnes of cardamom have been bought by exporters last week. More enquiries are said to be pouring in, it said.

Upcountry buyers were also active as they were also of the opinion that high fluctuation in the prices in the coming days might be unlikely.

The individual auction average price dropped to below Rs 700 a kg to Rs 696.03 at the KCPMC auction on Sunday from Rs 785.95 a kg the previous Sunday. The maximum price was at Rs 980 a kg and the minimum was Rs 362.50 a kg, Mr Punnoose said.

Total arrivals during Aug 1 to May 22 stood at 10,072 tonnes. Of this 9,818 tonnes were sold.

Arrivals and sales in the same period of the previous season were 9,575 tonnes and 9,378 tonnes respectively.

Weighted average price as on May 22, was Rs 1,034.50 a kg, as against Rs 832 a kg same day last year.

Open market price in Bodinayakannur on Monday morning for good colour 8 mm bold was at Rs 1,150-1,200 a kg while that for graded varieties dropped and (in Rs/kg)were: AGEB (7mm) 900-950; AGB (6mm) 750-800; AGS (5mm – 6mm) 650-700 and AGS 1 – 650. Good bulk was being sold at Rs 680-710 a kg, market sources in Bodi told Business Line.

Overall weather conditions remained suitable for the plants and hence the next crop is likely to be good and expected to hit the market in late June/early July, growers in Kumily said.

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