Date:20/05/2005 URL: http://www.thehindubusinessline.com/2005/05/20/stories/2005052001281000.htm

Back Cardamom prices rule steady

G.K. Nair

Kochi , May 19

CARDAMOM prices continued to rule steady with a slight improvement at the auction held on Wednesday at Kumily.

The weighted average price has accordingly moved up by Rs 3 a kg from that of the last week.

Increased direct sales during the 2004-05 season had reduced both the arrivals and sales at the auctions held in Kerala and Tamil Nadu compared with the previous season. Arrivals till May 18 stood at 4,788 tonnes as against 5,179 tonnes in the corresponding period last year, while sales were at 4,452 tonnes and 4,797 tonnes respectively. The weighted average price this season is Rs 303.40 against Rs 362.67 a kg a year ago.

Prices of graded varieties as on May 14 were AGEB Rs 380 - 390, AGB Rs 300-310, AGS Rs 280-290 and AGS1 Rs 265-275 a kg.

According to Mr P.C. Punnoose, General Manager of the auctioning company, Cardamom Processing and Marketing Company (CPMC), the average price at the auctions on Wednesday at Kumily was Rs 310 a kg. He said buyers were active and the entire quantity of 18.5 tonnes of cardamom was sold out. Around 60 per cent of lot was of old stock, while the balance of the current picking (last round).

There were 500 kg of 8mm bold capsules, which were sold at Rs 455 a kg while 7mm at Rs 350 - 370 a kg. Current bulk was sold at Rs 275 a kg.

Exporters bought three tonne of sick variety for shipments to Japan, he said.

So far, the weather conditions in the growing areas were favourable and if it prevailed during the rest of the season the crop is expected to be good.

Meanwhile, the overseas market is flooded with cheap cardamom from Guatemala, which according to unconfirmed reports has a bumper crop estimated at over 20,000 tonnes. As the domestic consumption in this country is negligible, almost all the crop is exported at low prices. A good quantity of this commodity has arrived in the Indian markets also, market sources said.

This has placed the Indian cardamom at a disadvantageous position, as it cannot compete in terms of price in the world market despite its superior quality, export sources told Business Line.

On the other hand, the increase in productivity in India had raised the total production in the country to around 11,500 tonne resulting in an increase in availability. The increase in yield-per-hectare does not seem to have reduced the cost of production in Kerala, they added.