Cardamom prices were marginally down due to sluggishness in the market at auctions held last week in Kerala and Tamil Nadu. Both up country dealers and exporters were not active; and were covering only small quantities.

The reasons attributed to the bearish sentiments were liquidity crunch due to the financial year closing and inferior quality of the material arriving from the present picking, trade sources said.

Acute shortage of labour led to deployment of unskilled workers for picking and they have harvested even immature capsules. Consequently, arrivals were small in size and of light weight, they said.

Rains in the growing region last week have given the impression that it would reduce the gap between the current crop and the next crop and this in turn has helped create a bearish sentiment in the market.

Better crop

With good farm management, improved irrigation facilities coupled with the timely summer rains, harvesting might continue throughout the year without any break as the plants are healthy and yielding.

Apart from these factors, some have opined that the good quantity of material was being held by major growers and primary market dealers. All these factors contributed to create a bearish sentiment in the market. As a result, the buyers have slowed down their activities.

Exporters bought only an estimated five tonnes last week, they said.

At the Sunday auction conducted by the KCPMC stood at 48 tonnes and of this two tonnes were withdrawn. The maximum price was at 1,300 a kg while the minimum was at Rs 695.50 a kg. The Auction average was at Rs 960 a kg, Mr P C Punnoose, General Manager, CPMC told Business Line . He said the individual auction average price was vacillating between Rs 1,000 and Rs 950 a kg last week.

Total arrivals during the current season from August 1 to March 27 stood at 8,237 tonnes. Of this 8,031 tonnes were sold.

Arrivals and sales in the same period of the previous season were 8,262 tonnes and 8,084 tonnes respectively. Weighted average price as on March 27, 2011 was Rs 1,101.70 a kg, up from Rs 801.84 a kg same day last year.

Prices for graded varieties in Rs/kg in Kumily on Monday were: AGEB 1,245-1,255; AGB 1,145-1,155; AGS – 1,115-1,125 and AGS1 – 1,095-1,105. Prices as per trade sources in the open market in Bodinayakannur in Rs/kg were: AGEB (7-8 mm) 1,225-1,235; AGB (6-7 mm) 1,125-1,135; AGS (5-6mm) 1,100- 1,115, and AGS 1– 1,075-1,085. The weather in the growing areas in Kerala's Idukki district were favourable for the crop as the estates received rains on two days last week. It is going to be good for the plants which may continue yielding through to the next season, growers said.

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