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Export buying last week kept cardamom prices nearly steady most of the days last week except Thursday and Friday. But, prices recovered on Sunday on good overseas demand at auctions.
Arrivals were moderate and yet, prices moved up on Sunday, market sources said.
However, on Monday the average price declined marginally at the CPA auction probably due to inferior quality of the material, they said. The material brought to this auction is usually of inferior quality, they said. Total arrivals there were at 11 tonnes and the entire quantity was sold out. Auction average was at Rs 717.50 a kg.
An estimated 60 tonnes of cardamom must have been bought by exporters and more buying is likely in the coming days as the consignments should reach the overseas markets at least a month before Ramzan i.e. before July 31, they said.
The advantage of early Ramzan is that by this time Guatemala cardamom will not be available as the crop has yet to ripen. Hence it won't emerge as a competitor during the period, they said.
There could be some more buying interest emerging from Gulf markets in the coming days for the Indian produce, which could keep the market steady to firm, they said.
Upcountry buyers were also seen active but buying small quantities, as a result the entire quantity of 56.8 tonnes of cardamom arrived at the Sunday auction was sold out. The maximum price fetched was Rs 929 a kg and minimum Rs 450 a kg. The auction average improved to Rs 730.41 a kg, Mr P C Punnoose, General Manager, CPMC told Business Line .
Total arrivals during last week increased to 257 tonnes from around 230 tonnes the week before.
Total arrivals during the current season from August 1-June 12, 2011 stood at 10,856 tonnes. Of this 10,581 tonnes were sold.
Arrivals and sales in the same period of the previous season were 10,235 tonnes and 9,945 tonnes respectively.
Weighted average price as on June 12, was at around Rs1,038.05 per kg, as against about Rs 830.50 per kg same day last year.
Exporters are said to be holding orders in hand and hence are expected to buy good quantity to meet their overseas Ramzan requirement, a major dealer in Bodi said.
Prices of graded varieties in Kumily(Rs/kg) were: AGEB 1,000 - 1,100; AGB 790 - 800; AGS 760 - 770 and AGS 1- 710 -720.
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