The cardamom market continued to remain steady on matching demand and supply following decline in arrivals last week at auctions held in Kerala and Tamil Nadu.

Total arrivals, last week at auctions, dropped to about 450 tonnes from around 505 tonnes in the previous week.

Declining arrivals

The decline in arrivals is believed to be following a self-imposed regulated release by growers as a market intervention exercise, trade sources said.

The average auction price dropped to around Rs 550 mid-last week and since then the arrivals showed a declining trend and that in turn pushed the price up in the subsequent auctions, making it to vacillate between Rs 570 and Rs 600 a kg, trade sources said.

Exporters were not active last week and they estimated to have bought around 40 tonnes. However, upcountry stockists were actively covering. Diwali buying is almost over, Mr P.C. Punnoose, General Manager, CPMC told Business Line.

However, he said, purchases for the wedding and Christmas season are expected to commence in the coming days. “Arrivals in the recent weeks were huge and the market did not seem to be able to absorb that much quantity, which it in turn aided the price decline”, he pointed out.

Arrivals at the Sunday auction held by the KCPMC dropped to 82 tonnes from 107.5 tonnes the previous Sunday and almost the entire quantity was sold out. The maximum price was Rs 872 and the minimum was Rs 445 a kg. The average was at Rs 587 a kg, he said.

Total arrivals during the current season up to October 16 stood at 4,813.7 tonnes as against 2,158 tonnes in the same period the previous season.

Sales during the period were at 4,699 tonnes and 2,120 tonnes respectively. Weighted average price as on October 16 was at around Rs 585 a kg while that on the same day last year was around Rs 1,195 a kg.

Steady market

“A matching demand and supply situation continued to exist and that has kept the market steady last week and on Monday also it is steady as there is buying interest shown by exporters as well as upcountry buyers”, Mr Ranganathan, a Bodi-based dealer told Business Line.

Prices graded varieties in the open market remained unchanged on Monday. At Kumily prices in Rs/kg were: AGEB 750-800; AGB 660-680; AGS 620- -650 and AGS 1- 610-640 while that in Bodinayakanuur (in Rs/kg): AGEB (7-8 mm) 730-760; AGB (6-7mm) 620- 650; AGS (5mm – 6mm) 600-640 and AGS 1: 590 - 600. 8mm bold was fetching Rs 950-975 a kg, the trade sources said. Good bulk was being sold at Rs 660-680 a kg in Bodinayakannur.

The weather conditions last week remained favourable with rains during the weekend bringing in some respite, growers in Kumily said.

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