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G.K. Nair

Except for some purchases by upcountry buyers, there is no activity in the market. Exporters are also not active.

KOCHI, May 20

CARDAMOM prices fell sharply at auction sales in major centres of Kerala and Tamil Nadu on oversupply and poor demand.

Anticipation of a better crop next season, in view of cardamom-growing areas receiving intermittent showers in recent weeks, seems to have compelled the farmers who were holding back their produce to liquidate it now.

This phenomenon has resulted in an increase in the arrivals. The arrival of 64 tonnes at the May 17 auction at Vandanmedu is an indication of this.

On the other hand, majority of the auctioneers have suspended auctions. The next auction is scheduled for May 21 at Kumily and would be the last auction of the season there. Except for one company, all the others have already announced closing of their auctions. Last season, auctions were closed on April 30.

It is not the shrinkage in arrival, which is responsible for the closure of the auctions. Liquidity problems faced by the auctioneers are forcing them to take such a step. Payments from the clients are yet to come, market sources told Business Line on Tuesday. However, one of the auctioneers is likely to continue with the auctions through to the next season, as it has not given any indications of suspending it so far. The Spices Board insists on conducting auctions with out break throughout the season, according to official sources.

Except for some buying by upcountry buyers there is no activity in the market. Besides, exporters are also not active. The quality of the cardamom arriving in the market now is also inferior because of the fading of the colour of the capsules, sources said. Exporters are awaiting for the new crop.

The prices of graded varieties were AGEB Rs 570 - Rs 580, AGB RS 400 - Rs 410, AGS Rs 385 - Rs 395 and AGS 1 Rs 350 - Rs 360. The average price has also fallen to Rs 454.22 per kg last week.

The total sales through auctions during the current season stood at 3,822 tonnes at the weighted average price of Rs 566.01 as against 3,099 tonnes at the average price of Rs 626.82 on April 30, 2002, the last auction of the previous season.

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