Date:27/05/2006 URL: http://www.thehindubusinessline.com/2006/05/27/stories/2006052700341300.htm

Back Cardamom up on buying support

G.K. Nair

Arrivals in Kerala, TN auction centres `highest'

Kochi , May 26

Cardamom prices improved during the week by Rs 10 - 15 a kg at auctions held in Kerala and Tamil Nadu on buying support.

Availability of good bold and green capsules is said to have prompted the north Indian dealers to buy and stock, market sources told Business Line. Exporters were also buying albeit small quantity.

Higher Supply

The supply continued to be on the higher side as the farmers who were holding back the cardamom harvested late last year, are releasing it now anticipating a good crop next season.

The arrivals at the auction centres in Kerala and Tamil Nadu during the current season is said to be the highest in the history of auctions.

As on May 24, the total arrivals stood at 9,189 tonnes at the centres in these two States against 4,852 tonnes in the corresponding period last season. The arrivals at the auction centres in Karnataka are also estimated to be around 3,000 tonnes.

13,000 tonnes production

Thus, the total production, including the quantity held by major growers, could be somewhere around 13,000 tonnes during the 2005-06 season, trading sources said.

The sales at Kerala and Tamil Nadu auctions as on May 24 were at 8,585 tonnes against 4,515 tonnes in the corresponding period previous season. The weighted average price was Rs 215.07 against Rs 303.26 a kg on May 24, 2005.

Exports stable

The prices of graded varieties were AGEB Rs 300 - 310, AGB Rs 230-240, AGS Rs 200-215 and AGS 1 Rs 175 - 185 a kg. The local prices in Bodinayakannur on Thursday were AGEB Rs 275 - 280; AGB Rs 225 - 235; AGS Rs 200 - 210; AGS1 Rs 160 - 170 and bulk Rs 250 - 260 a kg.

Exports last month from this region stood at 59 tonnes and it is expected to maintain during May also, exports sources said.

Favourable weather conditions prevailing in the growing areas at present indicates that the crop next season might be better than this year.

The maximum price fetched at Cardamom Processing and Marketing Company (CPMC) auction in Kumily on Wednesday was Rs 409 a kg for 8 mm bold green capsules.

Availability of this variety was only 550 kg out of the total arrivals of 67 tonnes, said Mr P.C. Punnoose, General Manager, CPMC.

SALES RECESS

As the harvesting season has almost come to an end the auctioneers are understood to be planning for an interval till the beginning of the next season. Auctions, therefore, might remain suspended from Jun 7 to July 11.