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Cardamom prices fall Rs 30/kg

G.K. Nair

KOCHI, Sept. 18

CARDAMOM prices witnessed a downward trend from the previous Friday on poor buying activity in major auction centres in Kerala and Tamil Nadu.

The prices have declined by Rs 30 per kg. The North Indian buyers were inactive and only some of the exporters were active but it was restricted, trading sources told Business Line on Monday.

According to them, the traders were awaiting heavy arrivals from the first week of October as the crop was very good following the recent rains.

However, officials sources said the growers were holding back the stocks in anticipation of higher prices. During the season so far, the prices had been remunerative. But once the selling pressure began they might fall, they warned.

As on September 17 around 558 tonnes were sold at an average price of Rs 573.88 per kg through auctions and about 1,300 tonnes were sold through direct sales. This indicated that the crop was better this year. As against this, less than 200 tonnes were s old last season at an average price of Rs 411 per kg.

The sources said the traders were waiting for the prices to fall. Export enquiries were there but they were not materialising. For the first time in the history of cardamom auctions, huge quantities were sold directly.

The traders had resorted to direct purchase the four per cent sales tax, while the growers found this convenient so that they would not have to pay the one per cent commission to the auction centre. Besides, they could get the payments quicker than from the auction centres. On the other hand, the money lenders, who had advanced funds to the growers earlier were also now procuring directly from them at low prices.

A total quantity of 101.3 tonnes were sold at an average price of Rs 633.64 per kg during the period from September 10 to 17. On September 10 at the Cumbum auction, eight tonnes were sold at a maximum price of Rs 851, minimum Rs 403 and average Rs 622.30 per kg.

The next day at Bodinayakannur eight tonnes were sold at a maximum price of Rs 720, minimum Rs 466 and average 604.34. On September 12 there was no auction. On September 13 at Kumily, 22 tonnes were sold at a maximum price of Rs 846, minimum Rs 380 and a verage Rs 630.39 per kg. The next day at Bodinayakannur 2.2 tonnes were sold at a maximum price of Rs 689, minimum Rs 441 and average Rs 632.81 per kg.

On September 15, 28 tonnes were sold at a maximum price of Rs 853, minimum Rs 440 and average Rs 632 per kg. On September 16 at Vandanmedu, 28 tonnes were sold at a maximum price of Rs 961, minimum Rs 440 and average Rs 657 per kg. On September 17 at Cum bum, 5.1 tonnes were sold at a maximum price of Rs 869, minimum Rs 461 and average Rs 656.65 per kg.

The average prices of different grades during the week were AGEB Rs 740 to 750 per kg, AGB Rs 610-620, AGS Rs 590-600 and AGS 1 Rs 540-550 per kg.

According to trading sources, arrivals were low at the auction centres and as well as in the open market despite a better crop. They said Guatemalan crop was also good this year and it was expected to arrive in the market by mid November.

Once the prices started falling, there could be a heavy selling pressure here which could push the prices sharply down, especially when the Guatemalan crop arrived in the market.