Cardamom prices fell last week on heavy arrivals, with supply outstripping demand at auctions in Tamil Nadu and Kerala.

The arrivals this season have been heavy; against 195 tonnes of arrival in July 2010 the number was 1,600 tonnes in the month this year.

This mismatch has pulled down prices, market sources in Bodinayakannur and Kumily said.

Because of favourable weather conditions, the output in the first round of picking — which is ending soon — was very high. A similar situation is likely in the coming two rounds also, they claimed.

They told Business Line that even they could come to the conjecture that production during the current season might cross 15,000 tonnes, the highestin history.

The arrivals were at 2,061 tonnes during April-July 2009. For the same period in 2010, arrivals were 1,426 tonnes; and in 2011 the number soared to 4,884 tonnes.

This shows the sharp rise in output due to good climatic conditions and good farm management practices undertaken by growers last year when the prices were ruling at the highest ever levels, they said.

The average prices during April-July 2009, 2010 and 2011 were Rs 692, Rs 1,350 and Rs 725 a kg respectively.

Arrivals each week these days stood at above 350 tonnes. However, there has been nearly matching demand from overseas and upcountry markets, which has helped prices from falling sharply so far, they said.

Already more than 100 tonnes of the material were bought by exporters last week. Similarly, upcountry buyers were also covering.

Exports during the current fiscal from April-June have shown a substantial increase to 590 tonnes valued at Rs 58.19 crore at the unit value realisation of Rs 986.29 a kg from 185 tonnes valued at Rs 21.17 crore at unit value of Rs 1,144.50 a kg in the same period last year, official sources said.

Early Ramzan demand this year; non-availability from the lone other source, Guatemala; and the viable prices in India aided the rise in exports so far this year, Mr P.C. Punnoose, General Manager, CPMC, told Business Line .

Arrivals at the KCPMC auction on Sunday were at 71 tonnes and the maximum price fetched was at Rs 1,085 a kg and the minimum was Rs 434 a kg. Average price was at Rs 680 a kg as against Rs 693 a kg the previous Sunday, he said.

Arrivals at the CPA auction held today in Bodinayakannur also increased to 29 tonnes .The maximum price stood at Rs 800.50 a kg and the minimum at Rs 423.50 a kg. Auction average was at Rs 642.26 a kg.

Arrivals during the current season from August 1 to July 28 stood at 13,215 tonnes. Of this 12,897 tonnes were sold.

Arrivals and sales in the same period of the previous season were at 9,878 tonnes and 9,672 tonnes respectively.

Weighted average price as on July 28, was at Rs 971.72 a kg, as against Rs 879.26 a kg in the same day last year.

Prices of AGEB fell by around Rs 40 a kg while that of other grades remained by and large steady from that of last week in both Kumily and Bodinayakannur on Monday. Prices in Kumily for graded varieties for a kg were: AGEB Rs 930-940; AGB Rs 750-765; AGS Rs 715-725 and AGS 1: Rs 670-685.

Prices in the open market at Bodinayakannur for a kg were: AGEB (7mm) Rs 920-940; AGB (6mm) Rs 730-740; AGS (5mm-6mm) Rs 695-705 and AGS 1: Rs 660-670.

Good bulk was fetching Rs 575-700 a kg in Bodinayakannur. The weather conditions in the growing areas remained good with good rains last week with occasional sun shine. Overall, conditions are favourable for plants and if the situation persists, the next crop is going to be good, growers in Kumily said.

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