Cardamom prices firm on export buying

Export buying kept cardamom prices steady during the past few weeks at auctions held in Kerala and Tamil Nadu despite heavy arrivals.

Total arrivals last week up to Saturday – Sunday being a holiday on account of Pongal – were around 600 tonnes. Of this, an estimated 150-200 tonnes were bought by exporters. Some north Indian buyers were covering. The individual average price, like in the previous week, vacillated between Rs 480 and Rs 525 a kg.

There was demand for good quality bulk material and on an average were bought at Rs 550-580 a kg, trade sources said.

“The growers and primary market dealers are releasing the backlog created by the nearly a month-long disruption in cardamom trade in December last year,” Mr P.C. Punnoose, General Manager, CPMC, said.

He said quality of material is deteriorating due to delayed harvest of capsules. This was on account of labour shortage and fewer buyers in the aftermath of the Mullaperiyar agitation. Add to this is the comparatively higher crop this season which also affects the size and quality of the capsules, he said.

“In fact, quality of the material could be partially attributed to the overall decline in the prices during the current season. The 8 mm bold green capsules are fetching Rs 800 a kg in Bodinayakannur and there are good export buying because of the availability of export quality material at attractive prices,” Mr Ranganathan a Bodinayakannur dealer said.

During the current fiscal, exports of cardamom small are estimated to cross 3,000 tonnes, more than double the target set by the Spices Board for the fiscal, export sources claimed.

Already 2,300 tonnes valued at Rs 195.75 crore were exported during April-October 2011 against the set government target of 1,500 tonnes valued at Rs 120 crore. If this trend continued, it could cross 3,000 tonnes much before the end of the current financial year, they said.

Non-availability of quality material from other sources coupled with attractive exchange rates have increased export buying, they said.

There were no auctions on Sunday and Monday on account of Pongal festivities. In need of money ahead of Pongal, farmers brought more stocks to the market last week, Bodi traders said.

Total arrivals as on January 14, stood at around 9,835 tonnes and the sales were at around 9,560 tonnes against about 6,725 tonnes of arrivals and around 6,695 tonnes sales in the same period last year.

Weighted average price as on January 14, was at about Rs 565 a kg against around Rs 1,075 on the same date last year, auction sources said.

Prices of graded varieties in Bodinayakannur on the date remained at previous levels (Rs/kg): AGEB Rs 625-650; AGB Rs 550-570; AGS 530-550 and AGS 1: 500-510, trade sources in Bodi said.

Good bulk was being sold at Rs 580 a kg. Average, medium and rejection bulk were being sold at Rs 520, Rs 480 and Rs 380 a kg respectively, the Bodi dealer said.

Chilly weather in the growing areas of Idukki in recent days may have a negative impact on the growth of the plants if it continued for long, growers said.

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