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Last week, cardamom prices fell sharply at auctions held in Kerala and Tamil Nadu on bearish sentiments created by good rains and increased arrivals amid slack demand.
The rise in arrivals at the auctions last week gave the impression that the growers were holding huge stocks and, as a result, the buyers had slowed down buying. In addition, the continuous rains the week before last in the growing areas has led the market to believe that the next crop would be good and early. And this has strengthened the bearish sentiments.
“The upsurge in arrivals now when the harvesting has already come to an end at all the auctions held last week has created the impression that the growers and primary market dealers are holding huge stocks which they are liquidating now following good rains in the growing areas”, trade sources said. These sentiments have compelled buyers to slow down their purchases and that has, in turn, led to a decline in the prices.
Total arrivals during last week were at around 295 tonnes. These are much more than the normal for this time of the season, they said.
Arrivals at the Sunday auction conducted by KCPMC were at 46 tonnes, and almost the entire quantity was sold out.
The maximum price fetched was Rs1,056 a kg and the minimum Rs 416.50, Mr P. C. Punnoose, General Manager, CPMC told Business Line . He said exporters also slowed down their purchases anticipating the prices would decline further. Total quantity bought was estimated at around 10 tonnes last week.
Total arrivals during the current season (from August 1 to May 1, 2011) stood at 9,351 tonnes. Of this, 9,120 tonnes were sold.
Arrivals and sales in the same period of the previous season were 9,040 tonnes and 8,825 tonnes respectively.
Weighted average price as on May 1, was Rs1,082 per kg, up from Rs 823 per kg same day last year. Individual auction average price dropped to below Rs 900 a kg and vacillated between Rs 810 and Rs 880 a kg from midweek last.
Prices per kg for graded varieties in Kumily on Monday were: AGEB, Rs 1,060-1,070; AGB, Rs 1,000-1,025; AGS, Rs 920-930; and AGS1, Rs 880-910. According to trade sources, the prices per kg in the open market in Bodinayakannur were:AGEB (7–8 mm), Rs 1,030; AGB (6-7 mm), Rs 900-950; AGS (5-6 mm), Rs 875; and AGS 1, Rs 850. Good colour 8mm bold capsules were not available in the market and the arrivals at present are of inferior quality and, hence, fetching low prices, trade sources in Bodi told Business Line . Good bulk was being sold at Rs 920 a kg, they said.
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