Date:18/11/2005 URL: http://www.thehindubusinessline.com/2005/11/18/stories/2005111801551200.htm

Back Cardamom prices steady despite heavy arrivals

Our Bureau

Kochi , Nov. 17

CARDAMOM prices ruled steady at auctions held in Kerala and Tamil Nadu during the week despite heavy arrivals.

However, the market witnessed an upward trend compared with the prices on November 10. From the average price of Rs 212.43 a kg at the STCL auction in Bodinayakannur last Thursday, it has gone up to Rs 232.32 at the Cardamom Processing and Marketing Company (CPMC) auction at Kumily on November 16.

At the CPMC auction on Wednesday, the arrivals touched a record 99 tonnes, of which the withdrawals were only around 3 tonnes. Buyers, both north Indian and exporters, were active.

"There was widespread buying activity," Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

The maximum price fetched was Rs 437 a kg for 8 mm bold, while the minimum was Rs 70 a kg. Current bulk was sold at Rs 215 - Rs 225; 7.5 bold fetched Rs 310-Rs 330 a kg.

The drop in arrivals in some of the auction centres has pushed up the volume at Kumily auction, market sources pointed out. The low prices coupled with the likely drop in the arrivals of Guatemala cardamom in the coming months seem to have encouraged the dealers to buy and stock, they claimed.

Total arrivals during up to November 16 stood at 3,630 tonnes, of which 3,400 tonnes were sold. As against this, arrivals and sales in the corresponding period last season were 2,022 tonnes and 1,898 tonnes respectively.

Weighted average price as on November 16 was 231.99 a kg as against Rs 303.12 on this date last season.

Prices of graded varieties as on November 12 were AGEB Rs 305- Rs 315, AGB Rs 225 - Rs 235, AGS Rs 215 - Rs 225 and AGS 1 Rs 195 - Rs 205 a kg.

Meanwhile, the prices in the open market in Bodinayakannur on Thursday were AGEB Rs 295- Rs 305, AGB Rs 215 - Rs 225, AGS Rs 195 - Rs 205 and AGS 1 Rs 190 - Rs 195 a kg.

Reports of crop damage in Guatemala appear to have resulted in increased enquiries and orders from overseas, export sources said. Total exports last month are estimated at 125 tonnes. This month also it is expected to be around that level, they said. Add to this the Indian prices at present are also competitive.

The weather conditions continued to be favourable and as a result the crop is very good. However, the growers are unhappy with prevailing low prices, which they claimed are not remunerative.