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Last week, cardamom prices dipped at auctions held in Kerala and Tamil Nadu on selling pressure coupled with bearish sentiments following good rains in the growing areas.
Add to this the upsurge in arrivals, in this lean period of harvesting, at all the auctions held last week.
This has created the impression the growers and primary market dealers are holding huge stocks which they are liquidating now following the good rains of late in the growing areas.
Rains, buyers believe, will reduce the supply gap between now and the next crop, trade sources said.
These sentiments have compelled buyers to slow their purchases and that, in turn, has led to a decline in the prices. The increased arrivals have substantiated their apprehensions, they said.
On Sunday, arrivals soared to 70 tonnes, while it stood at 69 tonnes on Wednesday, and 23 tonnes on Thursday at the STCL auction. On Wednesday, the average price stood at Rs 990 a kg. However, on Sunday it fell to Rs 913 a kg.
Total arrivals at the Sunday auction, conducted by the KCPMC, were 70 tonnes and almost the entire quantity was sold out.
Price, arrivals
The maximum price fetched was Rs 1,286.50 a kg and the minimum, Rs 713 a kg, Mr P. C. Punnoose, General Manager, CPMC, told Business Line . He said an estimated 15 tonnes of cardamom was bought by exporters.
Total arrivals during the current season (from August 1, 2010 to April 24, 2011) stood at 9,056 tonnes. Of this, 8,840 tonnes were sold.
The arrivals and sales in the same period of the previous season were 9,040 tonnes and 8,825 tonnes respectively.
The weighted average price as on April 24, 2011, was Rs 1,084 a kg, up from Rs 812 a kg during the same day last year.
The prices per kg for graded varieties in Kumily on Monday were: AGEB, Rs 1,075-1,100; AGB, Rs 1,025-1,050; AGS, Rs 950-960; and AGS1, Rs 900-910.
The prices, according to trade sources, in the open market in Bodinayakannur were: AGEB (7-8 mm), Rs 1,050; AGB (6-7 mm), Rs 950-1,000; AGS (5- 6 mm), Rs 900-925; and AGS 1, Rs 890-900.
Good colour 8mm bold capsules were fetching Rs 1,300 a kg in Bodi, , trade sources said. And good bulk was being sold at Rs 960-970 a kg.
All the cardamom growing tracts in Idukki district received good rains in the weekend and, thus, the weather conditions remained quite suitable for the plants and the next crop, trade sources said.
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