Cardamom Prices Continue Upward Move

Kochi: The cardamom prices continued their steady upward swing with the average price remaining above Rs 400 a kg.

The average price at the auction held in Kumily on Wednesday by the Cardamom Processing and Marketing Company (CPMC), for the first time in recent years, went up to Rs 463.39 a kg. It was at Rs 443.30 a kg at the November 13 auction held by Header Systems at Nedumkandam and Rs 459.38 a kg at the STCL auction held on November 15 at Bodinayakannur.

The drop in arrivals coupled with the exhaustion of inventory held by dealers in North India has resulted in active participation by the traders at the auction. This phenomenon has kept the prices almost steady with marginal increase so far during the current season, market sources told Business Line.

Arrivals

Arrivals during the current season up to November 14 stood at 1,931 tonnes against 2,682 tonnes in the same period last year, while the sales fell to1,824 tonnes (2,385 tonnes). There was a decline in output also last season.

The weighted average during the current season as on Nov 14 stood at Rs 414.48 a kg (Rs 322.46 a kg).

The decline in output is reflected on the arrivals, which has shown a drop of 30-40 per cent, P.C. Punnoose, General Manager, CPMCd, told Business Line. He said that the arrivals at Wednesday’s auction stood at 51 tonnes and the entire quantity was sold out. At the STCL auction on Thursday at Bodi it was at 23 tonnes. The maximum price was at Rs 575.50 a kg and the minimum Rs 134.

At Kumily, the maximum price was Rs 551 a kg and the minimum Rs 286 a kg; 8mm bold, which consisted of 10 per cent of the total arrival, was fetching Rs 525-550 a kg; 7mm was sold at Rs 475-500 a kg while current good bulk was fetching Rs 460-485.

Export buying

However, export buying was “very little” as the prices were at higher level making it not competitive in the overseas market, exporters said.

Prices of the graded varieties as on Nov 10 were AGEB Rs 505-515, AGB Rs 425-435, AGS Rs 405-410 and AGS1 Rs 385-395 a kg.

Prices in the local market at Bodinayakannur were AGEB Rs 490-500, AGB Rs 410 - Rs415, AGS Rs385 - Rs 390 and AGS1 Rs 365-385 a kg. Bulk was fetching Rs 490540 a kg.

Consistency in the prices at higher levels so far during the current season has brought smiles on the faces of the growers igniting some enthusiasm, trading sources said.