Good rains in the cardamom growing regions in Kerala have resulted in a bearish sentiment in the markets pushing prices down at auctions last week.

Prices declined at a time when the arrivals started shrinking. Trade sources in Kumily claimed that planters and sellers did not have material and whatever capsules arrived at the market were from small dealers.

Upcountry buyers were active in the market covering before the South-West Monsoon sets in by early June.

Exporters were cautious as prices were ruling high. They bought an estimated 20 tonnes.

Arrivals remained at below 50 tonnes on an average at the auctions.

Total arrivals last week dropped to 318 tonnes against 400 tonnes last week.

The rains have, in fact, raised the hope for an early crop in end-June/early July, market sources told Business Line.

As prices were ruling higher in the domestic market, Guatemala, which has been waiting for the Indian parity to rise, still continued to offer at competitive levels in West Asian and Gulf markets, trade sources said.

At the KCPMC auction, 50.4 tonnes arrived against 72.3 tonnes of cardamom the previous Sunday and almost the entire quantity was sold out, PC Punnoose, General Manager, CPMC, Kumily, said.

The maximum price was ₹1,086 a kg and the minimum ₹544 a kg.

Auction average fell to ₹841.91 from ₹869.46 the previous Sunday, he said.

During the current season of the crop, arrivals stood at 19,459 tonnes against 12,587 tonnes as on May 11 during the last season. Sales were 18,888 tonnes against 12,008 tonnes respectively.

The weighted average price as on May 11 stood at ₹635.52 against ₹726.32 a kg as on the same date last year.

Prices of all graded varieties (₹/kg): AGEB 1,020-1,030; AGB 800-810; AGS 770-780 and AGS -1: 750-760.

Bulk was fetching from ₹400 to ₹1,200 a kg.

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