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Cardamom prices ruled steady last week as demand matched supply at the auctions. Arrivals increased.
As prices were ruling moderately higher, most growers and traders released their produce. As the demand continues, prices ruled steady last week.
The firm trend was attributed to the increase in consumption following a rise in living standards and change in food habits. The per capita consumption is claimed to have moved up, PC Punnoose, General Manager, CPMC, in Kumily said.
At the same time, availability from the lone source, Guatemala, appears to be limited, trade sources said. Aggressive buying by upcountry dealers, especially those from Delhi, has kept the market steady despite an increase in arrivals, Ranganathan, a Bodi-based dealer told BusinessLine.
He attributed the “aggressive buying” to dealers’ apprehension of a shortage in supply from other origins. They might be anticipating a squeeze in supply from Guatemala where the crop could be small this year.
Export buying was slack as current prices are higher. However, they have bought an estimated 40 tonnes last week. The current third round of picking will come to a close by the month-end. From the fourth round onwards, arrivals will show a gradual decline and at the same time, quality will also slip.
Supply of 8 mm bold capsules was at 30 per cent of the total volume. However, arrival of extra bold capsules has come down to 20-25 per cent of the bulk against 30-40 per cent until recently, traders said.
At the Sunday auction held by the Kerala Cardamom Processing and Marketing Company, arrivals increased to 121.3 tonnes from 113.4 tonnes at the previous Sunday and the entire quantity was sold out. The maximum price was at ₹989 a kg and the minimum was ₹441. The auction average was at ₹774.04 against ₹778.11 the previous Sunday, Punnoose said.
Total arrivals during the season so far stood 9,226 tonnes (10,116 tonnes). The sales were at 9,064 tonnes and 9,782 tonnes respectively. The individual auction average, as on December 14, was at around ₹760 a kg (₹560).
Prices of graded varieties (₹/kg): 8mm bold 970-980; 7mm-8mm 830-840; 6mm-7mm: 750-760; below 6 mm 670-680.
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