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Export buying kept the cardamom prices firm last week at auctions in Kerala and Tamil Nadu.
Exporters bought available exportable grade capsules and that, in turn, pushed prices up. They purchased an estimated 70 tonnes of cardamom last week, said market sources in Bodinayakannur. Other grades arrived in the market were bought by upcountry dealers. Shortage of sufficient quantity of exportable grade capsules continued.
Meanwhile, as the weather has been unfavourable from the beginning of this year without showers, there is a bullish sentiment building up in the market. In the past couple of years there wasn’t a break in supply because of rains and that led to continuous flowering, yielding and harvesting.
As a result, there was a continuous flow of cardamom into the market throughout the year. But, this year a gap in between both the seasons is most likely, they said.
Notwithstanding this, there could be a temporary slow down in the market if the rains fail in the coming days. Harvesting of the current season is over.
No material comes from the estates now and whatever capsules arrive, currently, is from the stocks held by growers and the primary market dealers, trade sources in Kumily said.
Ever since prices began to surge, some growers have started releasing stocks they are holding.
Exporters have good orders on hand and they are expected to stay in the market buying whatever material available till September-October, when the Guatemalan crop hits the market.
During the current season of the crop to July, arrivals as on February 23 were 15,053 tonnes against 8,529 tonnes during the same period a year ago.
Sales were 14,674 tonnes against 8,085 tonnes. The weighted average price as on February 23 was ₹599.52 a kg ( ₹768.82). The maximum price was ₹919 and the minimum ₹449 a kg. The auction average increased to ₹666 (₹653.44) the previous Sunday, PC Punnoose, General Manager, CPMC, said.
Prices of all graded varieties (₹/kg): AGEB 820-830; AGB 660-670; AGS 620-630; and AGS -1: 605-615.
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