Date:17/12/2005 URL: http://www.thehindubusinessline.com/2005/12/17/stories/2005121700430900.htm

Back Buying support keeps cardamom prices steady

G.K. Nair

Kochi , Dec. 16

THE cardamom market ruled steady during the week to Thursday on buying support but without any improvement in prices at the auctions held in Kerala and Tamil Nadu.

Arrivals continued to remain high due to a bumper crop. Active buying by dealers demonstrated that the market was capable of absorbing the entire supply because of low prices, Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company (CPMC), told Business Line.

Export demand has also started picking up because of the competitive price on the one hand and expected shortfall in supply from Guatemala on the other, he said.

He said that arrivals at the CPMC auction on Wednesday stood at 98 tonnes, of which 94 tonnes were sold. The average price was 213.08 a kg. North Indian dealers and exporters were active, with the latter buying 15 tonnes. Demand for bold varieties was strong resulting in AGEB fetching Rs 260-275 a kg, while 8 mm bold was sold at Rs 416 a kg.

Total arrivals during the current season stood at 4,775 tonnes as against 2,776 tonnes in the corresponding period last year.

Sales this year were at 4,472 tonnes compared to 2,604 tonnes in the same period last year. The weighted average price this season was Rs 226.84 a kg as against Rs 301.25 a kg.

Prices of graded varieties were: AGEB Rs 300-310, AGB Rs 215-225, AGS Rs 200-210 and AGS 1 Rs 175-190. Bulk fetched Rs 200-240 a kg.

Prices in the local market at Bodinayakannur were AGEB Rs 290-300, AGB Rs 200-205, AGS Rs 195-200 and AGS1 Rs 170-175 a kg.

The Kerala Cardamom Processing and Marketing Co-operative , a subsidiary of CPMC, had shifted its auction centre from Nedumkandam to Thekkady (Kumily) last Sunday. As a result, two auctions will be held in Kumily on Wednesday and Sunday. "This would give better services to the farmers and traders because of the good infrastructure available at Kumily," Mr Punnose said.

The cash and carry system introduced last year by the auctioneers has arrested speculative trading this year. As a result, fluctuations in prices have been marginal, he pointed out.

Meanwhile, financial problems is said to have made one of the auctioneers at Vandanmedu, who has been in this field for about 45 years, partially defunct. This has resulted in an upsurge in the arrivals at other auction centres, mainly at Kumily, market sources said.

As weather conditions continue to remain favourable harvesting might continue for long, sources said. Given this situation, supply was likely to continue throughout the year as also the trading, they added.