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Cardamom prices increased significantly last week on buying support amid limited arrivals at auctions.
Individual auction average last week vacillated between Rs 805 and Rs 890 a kg from Tuesday to Saturday, while it dropped to Rs 764.24 on Sunday. According to reports from Bodinayakannur, prices are on the upward swing at the auction currently underway conducted by the CPA on Monday.
Some in the trade told Business Line that some new stockists are buying good quality capsules on the anticipation that there would be a shortage of the material in the coming months and till the arrival of the fresh cardamom which is likely to be delayed due to unfavourable weather conditions.
The next crop is expected by late August. They are said to be operating through local traders. This phenomenon has aided the price rise, they claimed.
Exporters, who are still hoping that the prices would fall, bought some 15-20 tonnes. Ramzan buying is yet to pick up, they said.
Not a good sign
This kind of high volatility in the market is not a good sign, Mr P.C. Punnoose, General Manger, CPMC told Business Line . The current bullish trend in the market sends out the impression that some gambling is going on in the market. “Otherwise, such a significant rise in price would not take place.”
He said that from Tuesday to Friday of last week, the market was moving up sharply and crossed Rs 885 a kg on Friday. However, on Saturday and Sunday it showed a decline. But on Monday it is reported to have moved up significantly.
Mr Ranganathan, a trader based in Bodi, told Business Line that the market was moving up son speculation and prices were up by Rs 70 on an average from Sunday. He said that exporters bought an estimated 20 tonnes last week. However, Ramzan buying has begun at a slow pace because of the uptrend in prices, he said.
Arrivals at the Sunday auction stood at 80 tonnes and of this, 76.5 tonnes were sold. Maximum price was at Rs 1,197 a kg while the individual auction average was Rs 764.25 a kg, up from Rs 731.18 the previous Sunday, Mr Punnoose said.
Total arrivals during the current season to May 13 were 17,334 tonnes and sales 16,732 tonnes against 9,726 tonnes of arrivals and 9,474 tonnes of sales in the same period last year.
The weighted average price as on May 13 was Rs 621.9 a kg against about Rs 1,069.91 a kg on the same date last year, according to market sources.
Prices of graded varieties in Kumily on Sunday in rupees a kg were: AGEB 1,125-1,135; AGB 810-820; AGS 790-800 and AGS 1: 770-780
Open market prices of graded varieties in Bodinayakannur on Monday in rupees a kg were: AGEB Rs 1,100-1,120; AGB Rs 850-860; AGS Rs 800 and AGS-1: Rs 725, Good colour 8 mm bold cardamom was fetching prices up to Rs 1,400 a kg on Monday at Bodi, trade sources there said.
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