Despite heavy arrivals at the auctions held in Kerala and Tamil Nadu, the cardamom market gained last week on good export and domestic demand .

“The market gained by Rs 50-60 a kg from that of the previous week due to good covering by both domestic and export buyers,” Mr Renganathan, a dealer in Bodinayakannur (Tamil Nadu), told Business Line . He said good quality crop accounted for 30-40 per cent of the arrival, and 8 mm good colour bold was fetching around Rs 1,000 a kg on Monday.

Arrivals of CPA at Monday's auction in Bodi is said to be probably the highest ever at 61 tonnes, traders said. They said the market was firm despite huge arrivals.

Diwali purchases have started pushing up the market. Besides, buying for marriage/winter season/other festivals has also begun and it might continue till December, dealers in Kumily (Kerala) said.

According to them export buying last week could be estimated at around 50 tonnes. Overseas demand, for catering to NRIs in the Gulf, Europe and the US during the ensuing festival season, has started rising, they said.

Peak harvest time

Currently, the third round of picking is under way, and is considered the peak harvesting time and, hence, the arrivals have been heavy. The growers seem to want to sell at the current high prices, fearing a decline later. However, they should resort to regulated releases — more as a market intervention exercise — if they are to keep the prices from falling on a possible demand-supply mismatch, official sources suggested.

Total arrivals last week, when only six auctions were held instead of eight, came to 422 tonnes and the entire quantity was sold out because of good demand, said Mr P. C. Punnoose, General Manager, CPMC.

He said the arrivals at the KCPMC auction on Sunday stood at 92 tonnes and the entire quantity was sold. The maximum price stood at Rs 997 and the minimum, Rs 454.50. The average price was Rs 645 kg, he said.

Total arrivals during the current season, up to September 18, stood at 2,731 tonnes as against 1,317 tonnes in the same period the previous season. Sales during the period were at 2,678 tonnes and 1,308 tonnes respectively.

The weighted average price as on September 18, 2011, was Rs 594 a kg while on the same day last year it was Rs 1,296 a kg. The prices per kg in the open market at Kumily on Monday were: AGEB, Rs 775-800; AGB, Rs 650-680; AGS, Rs 635-645 and AGS, Rs 600-525. In Bodinayakanuur the prices were: AGEB (7 mm), Rs 725-760; AGB (6 mm), Rs 640-655; AGS (5-6 mm), Rs 620-635; and AGS 1, Rs 585-600. Eight mm bold was fetching Rs 940-1,000 a kg, the trade sources said.

The weather conditions in the growing areas were good, with no rains since last Friday. The current sunshine, after incessant rains, is good for the plants and the crop, growers said. Recent rains have led to fungus attacks and decay, they added.

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