The Hindu Business Line : Export buying boosts cardamom prices

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Kochi Feb. 2 Cardamom prices continued their upward swing on increased buying support from exporters during the week at auctions held in Kerala and Tamil Nadu.

The prices during the week went up by Rs 35 a kg pushing up the average price at Wednesday's auction to Rs 352 a kg. Exporters and domestic buyers were active during the week, market sources said.

Drop in output

There are good confirmed orders and enquiries from West Asian markets, mainly from Saudi Arabia, which according to them is due to short supply from Guatemala.

The drop in output in the world's top producer of cardamom in 2006-07 said to have made it difficult for Guatemala to meet its export commitments to Saudi Arabia, they said. Given this situation, the market sources claimed that there could be a potential to export 500 tonnes during January - March.

It was reflected in the increased activity of the exporters at the auctions. At the Cardamom Processing and Marketing Company's (CPMC) auction on Wednesday at Kumily, exporters bought 18-19 tonnes. Similarly, they were buying at other auctions also during the week.

Drought hits arrivals

Added to this, the arrivals have also declined because of the prevailing drought conditions, which has negatively affected the crop. On the other hand, the major growers said to have held back their produce anticipating the prices to increase further. As a result, there was increased buying by domestic dealers also. All these factors have contributed to the rise in prices, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.

At the Kumily auction, 8 mm bold fetched Rs 515 per kg, while 7.5 mm Rs 450 and good colour 7 mm Rs 400-410 per kg. At the auction conducted by the Header Systems at Nedumkandam on January 30 the maximum price went up to Rs 555 per kg and the individual average price to Rs 325.75 per kg.

The total arrivals as on January 30 during the current season dropped by 1,124 tonnes to 5,170 tonnes from 6,294 tonnes in the corresponding period last year. Similarly, the sales also fell by 1,132 tonnes to 4,753 tonnes from that of the previous season. The weighted average price during the season as on January 30 stood at Rs 296.17 per kg against Rs 222.80 per kg last season.

Graded varieties' prices

The prices of graded varieties as on January 30 were AGEB Rs 420 - 430, AGB Rs 335-345, AGS Rs 315-325 and AGS 1 Rs 280 - 290 per kg. The prices in the local market at Bodinayakannur on Thursday were AGEB Rs 400 - 410, AGB Rs 310 - 325, AGS Rs 300 - 310 and AGS 1 Rs 260 - 270 per kg. Current bulk was fetching Rs 350 - 400 per kg.

The weather conditions continued to remain unfavourable so far and it is expected to have a negative impact on the crop, official sources pointed out.

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