Cardamom continues to drop despite lower arrivals

Cardamom prices continued their southward journey last week at auctions due to bearish sentiments based on unconfirmed reports of increased availability.

Sluggishness in the north Indian markets due to unfavourable weather conditions that have been prevailing in recent weeks slowed demand. At the same time, buyers also stayed away from the declining market, trade sources said. Liquidity problems are also pointed out as the reason for slow buying, they said.

There has been a continuous decline in the arrivals as the harvesting is in the closing stages. According to growers, there will be one or two round of picking.

Individual auction price

Total arrivals during the week stood at 177 tonnes. The individual auction average price dropped to below Rs 1,200 a kg from Thursday onwards.

The average price at the Sunday auction dropped to Rs 1,196 a kg from Rs 1,220 the previous Sunday.

Severe cold wave conditions in the north Indian States coupled with unconfirmed reports of arrival of Guatemalan cardamom in the upcountry markets led to slow down in buying activities. The market will improve from next week, traders said.

Total arrivals at the KCPMC auction on Sunday stood at 29 tonnes and the entire quantity was sold out.

Maximum price stood at Rs 1,414 a kg. Auction average was at Rs 1,195.78 a kg, Mr P C Punnoose, General Manager, CPMC, told Business Line .

“The current negative trend is only a temporary phenomenon and indications are that the average price may vacillate between Rs 1,300 and Rs 1,500 a kg in the coming weeks,” Mr Punnoose said.

According to him, the material arriving at the market, at present, is of medium size and from the current picking. “It is also one of the reasons for the decline in the current prices,” he said.

Green bold capsules are being held back by the major growers who would release it only when prices moved up to their expected levels, he said.

Trade sources in Bodinayakannur said that even now 8 mm green colour bold was fetching Rs 1,450–1,500 a kg. According to him, prices have dropped by Rs 40-50 a kg from the previous weekend.

Total arrivals

Total arrivals during the current season from August 1 to February 6, 2011 stood at 6,866 tonnes. Of this, 6,721 tonnes were sold.

Arrivals and sales in the same period of the previous season were 6,920 tonnes and 6,855 tonnes, respectively.

Weighted average price as on February 6, 2011 was Rs 1,062 a kg, up from Rs 738 same day last year.

Prices for graded varieties in rupees a kg in Kumily on Monday were: AGEB 1,310– 1,320; AGB 1,235– 1,245; AGS -1,210 – 1,220 and AGS1 -1,190 – 1,200.

Prices as per trade sources in the open market in Bodinayakannur in rupees a kg were: AGEB (7 mm – 8 mm) 1,300- 1,310; AGB (6mm – 7 mm) 1,225– 1,250; AGS (5mm – 6mm) 1,200- 1,220 and AGS 1 - 1,175–1,190.

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