The Hindu Business Line : Spices Board hikes airfreight subsidy for cardamom exports

CARDAMOM prices ruled stable at auctions held in Kerala and Tamil Nadu on buying support especially from the export segment, which has been active following the announcement of airfreight assistance to exporters by the Spices Board for one month from October 16.

The scheme appears to have yielded positive results. From October 16 to November 30, exporters bought 127 tonnes of cardamom from auctions. On persistent demand from 11 exporters, the Board had extended this facility till December 31 and increased the rate of assistance from Rs 30 a kg to Rs 45 a kg from December 1, an exporter said.

Confirming the extension of time and increase in the rate, Mr S. Kannan, Director (Marketing), Spices Board, told Business Line that the airfreight assistance has made the produce competitive in terms of value in the overseas market. Guatemala cardamom is said to be quoting in the Gulf markets at $5 to $5.50 a kg. However, Indian cardamom gets a premium because of its superior quality and aroma.

Besides, upcountry buyers were also active after Diwali holidays and as a result, the prices remained stable from November 20, Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company (CPMC), said.

At the Kumily auction of the CPMC, on Wednesday, 42 tonnes were sold, of which exporters bought 5 tonnes, he said. The average price was Rs 320 a kg. Superior variety 8 mm bold fetched Rs 415 a kg, while bulk Rs 320 - 340 a kg, he said.

He said the airfreight assistance had benefited the company, which has already exported around 65 tonnes of cardamom this season. Given this trend it would be able to cross its target of 100 tonnes by March-end, he said.

Traders in the upcountry market had exhausted their inventories during the festival season in October and November and they were buying now to replenish the stocks, he said.

On the other hand, since the prices were ruling at lower levels the risk involved was minimum, he added.

During the current season up to November 29, arrivals stood at 2,317 tonnes of which 2,180 tonnes were sold. The weighted average price was Rs 302.45 a kg. In the same period, last season arrivals were to the tune of 2,042 tonnes and the sales 1,876 tonnes. The weighted average price was Rs 398.80 a kg.

Average prices a kg of graded varieties as on November 27, were AGEB Rs 355 - 365, AGB Rs 285 - 295, AGS Rs 270 - 280 and AGS1 Rs 245 - Rs 255, official sources said.

According to trading sources, there has been a marginal fall in the arrivals now, which they attributed to holding back by the major growers who are releasing their produce now in a regulated manner.

The crop is comparatively good this season because of the favourable weather conditions so far, they added.

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