With growers exhausting stocks, cardamom tops ₹800 a kg

Cardamom gained flavour on strong demand amidst short supply on resumption of auction on Monday after five days of holidays last week.

At the Cardamom Planters Association (CPA) auction in Tamil Nadu’s Bodinayakannur on Monday, the average price shot up to a record ₹832 a kg.

Total arrivals on Monday were 29 tonnes and the entire quantity was sold out. The individual auction average on Thursday crossed ₹800 a kg to close at ₹809.50 a kg on good demand.

There is said to be an apprehension in the market because of the continuous dry spell in the growing areas. Summer rains, which have been active in the midlands of Kerala, have eluded the main growing areas in the high ranges, growers in Kumily told Business Line .

“We badly need one or two good rains now. The plants started withering in the dry spell,” they claimed.

Arrivals have also started shrinking and aiding a bullish sentiment in the market, market sources said.

Export buying shrunk as no fresh orders were forthcoming following an upsurge in the prices here, exporters said. They attributed this to release of cardamom by Guatemala which was holding back its stocks for prices to move up. They continued to offer the commodity at competitive rates, about $2 a kg below the Indian parity, market sources told Business Line .

According to PC Punnoose, General Manager, CPMC, Kumily, arrivals are expected to be around 50 tonnes per auction as stocks held by the growers have already been liquidated.

He said the supply of cardamom from the estates/farms has come to an end and whatever material arrives at present is from the stocks and those held by the primary market dealers who had bought earlier when the prices were lower.

During the current season to July, arrivals are 18,438 tonnes against 11,130 tonnes during the same period a year ago. Sales have been 17,923 tonnes against 10,604 tonnes. The weighted average price as on April 17 was ₹622.75 a kg against ₹743.13 a year ago.

Prices of all graded varieties were up and their prices in ₹/kg were: AGEB 1020-1030; AGB 860-870; AGS 830-840; and AGS -1: 810-820. Bulk prices ranged between ₹450 and ₹1,150.

Weather conditions were reportedly unfavourable as the major growing tracks have been experiencing severe drought conditions for more than a month now.

Only some pockets such as Nedumkandam, Elappara and Kattappana have received mild summer showers, farmers in Idukki said.

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