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The ongoing Gulf Food Expo in Dubai is not quite reassuring for cardamom trade on account of pricing and confusion over the levels of pesticide residues.
It is reported that the high-priced, export quality 7 to 8 mm Indian cardamom has hardly found any takers at the expo and overseas buyers have opted for the Guatemalan crop, a similar variety which is priced at $40-42. The Indian cardamom rates are hovering in the range of $50-52.
Though India had successfully participated in earlier expos, the recent surge in cardamom prices, coupled with the restrictions imposed by Saudi Arabia due to the pesticide issue, seems to have discouraged many traders from participating this time. Indian cardamom is the most preferred variety in the Gulf markets because of the presence of more seeds and general spread of the capsule, an observer in the market said.
Even cardamom exports to Gulf markets was low at 500 tonnes up to February this year, compared with 1,000 tonnes last year.
The lower production cost is the main advantage of the Guatemala crop over the Indian commodity. To out-price the Indian cardamom, they lower prices, taking advantage of price fluctuations in the Indian market, the observer said, adding that Indian prices are governed in the auctions centres.
Meanwhile, auctions in Puttady on Thursday witnessed a mixed trend with a price rise of ₹100 per kg in the evening session, while it registered a ₹50 drop in the morning. Traders pointed out that upcountry participation was less in a declining market, while there was a good support from local buyers. The market has been witnessing a slower movement with the absence of any genuine demand, especially in North Indian consuming centres.
The auctioneers SpiceMore Trading Company offered 30.56 tonnes and the average price realisation for the sold quantity of 27.89 tonnes was ₹3,082.79. The highest price for selected lots was ₹3,606.
The offer made by Sugandhagiri Spices Promoters and Traders was 19.06 tonnes and the sold quantity was 16.01 tonnes. The average price realised was ₹3,175 per kg.
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