Cardamom gains flavour on lower arrivals

Exporters’ buying kept cardamom prices steady to firm last week at the auctions. Sunday’s auction witnessed an increase in prices with the average crossing ₹700 a kg. The uptrend continued on Monday at the Cardamom Planters’ Association (CPA) auction held in Bodinayakannur.

Upcountry buyers were also seen buying actively and it also supported the uptrend, market sources told Business Line . The individual auction average price, which had slipped to below ₹700 on most days last week, rebounded to above ₹700 on Sunday.

The decline in arrivals in recent days especially on Sunday changed the market sentiment.

Supply of cardamom from estates/farms has come to an end and the material arriving currently is from the stocks held by farmers and primary market dealers.

Therefore, as the lean season has begun, the market is bullish, sources said.

Exporters bought an estimated 130 tonnes cardamom last week. Availability of exportable grade capsule of 7mm and above was comparatively low, but the available material was picked up.

Exportable variety fetched ₹775-800 and exporters bought at this rate. Bold capsules 8mm were traded at ₹850-875, while bold good colour bulk cardamom sold at ₹700 a kg, they said.

Guatemala, another major producer of cardamom in the world, is reported to have exhausted its stocks and the material would be available only after the next crop harvesting in September/October.

According to the trade the next crop in Guatemala is estimated to be less.During the current season to July, arrivals are 16,652 tonnes against 9,531tonnes during the same period a year ago.

Sales are 16,200 tonnes against 9,043 tonnes.The weighted average price as on March 16 was ₹607.47 against ₹758.41 during the same period a year ago.

On Sunday, arrivals at the Kumily auctions fell to 77 tonnes from 98 tonnes a week ago. The entire quantity was sold. The maximum price was ₹1,001.50 and minimum ₹462 a kg.

The auction average moved up to ₹700.40 a kg from ₹687.72 a kg, Mr P C Punnoose, General Manager, CPMC said.

Prices of all graded varieties were steady last week and their prices in ₹/kg last weekend were: AGEB 885-895; AGB 705-715; AGS 675-685; and AGS -1: 645-655. Weather conditions were favourable, even though there were no summer showers in the growing areas.

On the other hand, cardamom futures, traded on MCX, are likely to rise over the next few days due to shortage of exportable quality and active buying by exporters.

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