Cardamom Prices Continue To Rule High

Kochi: For the first time after four years, the average price of cardamom has crossed Rs 500 a kg and the increase during the past three weeks was Rs 100 a kg. It was in 2003-04, the average price crossed this level.

The individual average price on Tuesday moved up to Rs 525 a kg at the auction held by the Header Systems at Nedumkandam in Kerala.

Arrivals, when compared to last year this time, continued to show a decline. At the auction conducted by STCL in Bodinayakannur on Thursday, arrivals stood at 42.5 tonnes and of which 39 tonnes of the capsules were sold. Maximum price was at Rs 540 a kg and minimum Rs 94 a kg. The average was Rs 482 a kg.

Kumily auctions

At the auction held in Kumily in Kerala on last Sunday by the Kerala Cardamom Processing and Marketing Cooperative (KCPMC), the prices shot up by Rs 50 a kg. However, in the subsequent auction held by Cardamom Processing and Marketing Company (CPMC) there on Wednesday, the price showed a decline of Rs 10 a kg. Arrivals stood at 62 tonnes and the entire quantity was sold out, P.C. Punnoose, General Manager, CPMC, told Business Line. Maximum price fetched was Rs 579 a kg while the minimum was Rs 241 a kg. Average price stood at Rs 500 a kg.

Exporters

According to him the exporters were active and bought seven tonnes of the commodity. Upcountry buyers were actively buying as they seem to have exhausted their inventory during the Diwali festival. Besides, the potential decline in output this season by 30-40 per cent is also a contributing factor, he said. Market has witnessed a marginal decline after Wednesday which could be considered as a “technical correction”, he said. As the prices were ruling high, there was a selling pressure also during the week.

Arrivals

The drop in arrivals has effected a corresponding fall in sales also. The total arrivals as on November 21 stood at 2,110 tonnes as against 2,900 tonnes during the same period last year. Similarly, the sales also dropped to 2,000 tonnes from 2,600 tonnes. The weighted average price stood at Rs 421.81 a kg as against Rs 318 during the same period last season. Eight mm bold of good colour and good size was fetching Rs 550-600 a kg while 7 mm Rs 525-550 a kg. Bulk was fetching Rs 480-520 a kg. Even inferior quality capsules were also getting good prices.

During November, considering the commitments made by the exporters during October, 30-40 tonnes of the commodity is estimated to be exported.

The yield in major growing areas of the Kerala’s Idukki district such as Santhanpara, Vandamedu, Kattappana has shown a decline of 30-40 per cent. Normally fourth round of picking used to be on by this time and instead, third round is going on and the output has been much less.

However, formation of tillers is good and if the weather conditions favoured there could be a better crop next year, market sources said.

The weather conditions prevailing at present are favourable, they added.