Cardamom prices continued to head north last week on domestic buying support despite increase in arrivals at the auctions.

Upcountry buyers actively covered for ensuing festival/wedding seasons as they fear of a sharp fall in the next crop due to unfavourable weather conditions prevailing for long in the growing areas.

Added to this, lack of summer rain followed by scanty South-West monsoon has created a fear in the market that the crop would also be delayed significantly. The growing areas have not got any monsoon rain for some time now, Mr P.C. Punnoose, General Manager, CPMC, Kumily, told Business Line . All these factors seem to have activated the market, he said.

The individual auction average increased last week and topped the Rs 800 a kg level from Tuesday last and moved up gradually to Rs 870 a kg on Friday. But on Sunday, it dropped to around Rs 800 a kg.

Almost 85-90 per cent of the arrivals were from the stocks and hence, the quality of the material was by and large medium and below, trade sources in Bodinayakannur said.

However, they said that upcountry buyers were actively covering for the Ramzan requirements and cross -border trade, they claimed.

Export buying was negligible at around10 tonnes last week, they said. Sources in Bodinayakannur said that bold 8mm good colour capsule was fetching Rs 1,300 a kg. The volume of high quality material that arrived was limited. Last week arrivals stood at about 400 tonnes against 405 tonnes the previous week.

Arrivals at the Sunday auction stood at 70 tonnes against 63 tonnes the previous Sunday and the increase in arrivals aided the price decline, Mr Punnoose said.

Maximum price on Sunday was at Rs 1,206.50 a kg and the minimum was Rs 487.50 . The individual auction average increased to around Rs 800 a kg from Rs 755.57 the previous Sunday, he said.

Total arrivals during the current season from August 1, 2011 to July 29 were 21,001 tonnes and sales totalled 20,211 tonnes against 13,191 tonnes and 12,861 tonnes, respectively in the same period a year ago. Weighted average price as on July 29 was around Rs 645 a kg against about Rs 978 on the same date last year, according to market sources.

Official prices of graded varieties (Rs/kg): AGEB 1,180-1,200; AGB 875-885; AGS 860-870 and AGS 1: 840-850

Open market pricesin Bodinayakannur: AGEB 1,150-1,160; AGB 850-860; AGS 820-840; AGS 1: 810-830.

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