The Hindu Business Line : Cardamom auctions to end for the season

CARDAMOM auctions will formally come to an end, till the beginning of the next season, after the last auction scheduled for next Friday at Vandanmedu in Kerala is over.

Three auctioneers based in Tamil Nadu and Kerala had already officially closed their auctions for the current season, while another based in Kumily in Kerala had postponed it indefinitely.

The only auctioneer based in Vandanmedu who has been holding the auctions on Fridays' would also now close after the next auction, sources told Business Line on Wednesday.

According to them, the current season has been a disastrous one for the both due to wild fluctuations in the price. Majority of the traders had lost heavily and the losses ranged from Rs 5 lakh to Rs 1 crore. These traders have to pay huge sums to the auctioneers and as a result, the latter had to postpone the auctions, they said. Sudden decline in prices after the purchases through auction had inflicted cash losses also to the traders, they said. "I have been in this business for the past 16 years but I have not ever come across such a disastrous situation," Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Cooperative Society, Kumily, said.

On the impact of the delayed South-West monsoon, he said, that as the plantation area had received some intermittent showers in the recent past the plants are in good shape. However, if the delay in the onset of monsoon continued for long then it would have a negative impact.

The current crop is over and whatever comes to the market now are the stocks held by traders and major growers, he said.

In the last auction at Vandanmedu on May 31, 38 tonnes were sold. The maximum price quoted was Rs 657 per kg while the minimum was Rs 191.

During the current season, so far 3,939 tonnes were sold through auctions and the weighted average price was Rs 563.17 per kg. Last season, it was 3,099 tonnes at an weighted average of Rs 626.82 per kg.

The prices of graded varieties now are AGEB Rs 560-570, AGB Rs 405-415, AGS Rs 390-400 and AGS 1 Rs 355-365 per kg. There was no buying for exports. However, few North Indian buyers were seen active. There were no enquiries from overseas as the importers are waiting for the prices to fall further, trading sources said. The exports by four major exporters were to the tune of 25 tonnes in May, they added.

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Cardamom auctions to end for the season