Small cardamom prices gained last week on shrinkage in supply at auctions held in Kerala and Tamil Nadu. The squeeze in arrivals is attributed to the Christmas and the New Year holidays.

Supply scenario is expected to improve this week. But, the main problem persistently affecting the trade is that only a third of the participants is still active at the auctions and in the open market trading, PC Punnoose, General Manager, CPMC, told BusinessLine.

He said harvesting in 85-90 per cent of the estates is over and whatever is left in 10-15 per cent of the area would be completed by mid-this month.

If the harvesting trend is any indication, the total output during the current season might come to around 40 per cent of the previous crop.

According to Ranganathan, a dealer in Bodinayakannur, the main trading hub for the commodity in the country, the market has improved last week by ₹50-60 a kg following a decline in arrivals. Thus, there has emerged a mismatch in demand and supply pushing the prices up, he said.

Exporters continued to stay active. They have bought an estimated 40-50 tonnes of exportable variety capsules last week.

Arrivals last week decreased to 286 tonnes from 447 tonnes the week before.

The individual auction average moved up to above ₹1,200 last week and was vacillating between ₹1,153 and ₹1,243 a kg.

Total arrivals during the season from August 1 up to December 31, were at 10,093 tonnes and sales were at 9,551 tonnes.

The individual auction average for the season as on December 31 stood at ₹1,068.66 a kg.

Prices in ₹/kg: 8mm bold good colour 1,500-1,600 ; 7-8 mm 1,300-1,400; 6-7 mm 1,200-1,250 and below 6 mm: 1,050-1,150.

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