The Hindu Business Line : Cardamom declines on rising supply

CARDAMOM sales during the current season up to March 31, 2003, have shown an increase of 375 tonnes over the previous season and the increased availability has pushed the prices down in recent months. A total of 3,156 tonnes were sold as against 2,781 tonnes, according to official sources.

As a result, that the weighted average price for the commodity stood at Rs 584.85 per kg as against Rs 615.96 per kg. Besides, the huge inventory with the traders in the major centres in the country had shrunk the demand position. Add to this is the liquidity crunch faced by the traders and auctioneers which had also weakened the buying activities.

Only three major exporters were active in the market as the prices continued to experience a downward trend.

This phenomenon had compelled them to buy only the quantity needed for meeting the immediate commitments, market sources told Business Line. They were anticipating that the prices might fall to around Rs 300 per kg by the end of the current season.

Exports of cardamom were estimated at around 500 tonnes as against 850 tonnes in 2001-02. This had increased the availability in the domestic market, they said.

The arrivals had also narrowed down with the result auctions last week were held only on Friday and Saturday at Vandanmedu in Kerala.

There were no auctions at Bodinayakannur and Kumily last week. Ever since the prices started falling, the major growers were also holding their produce back.

It was estimated that about 2,000 tonnes of cardamom of the current season were held by the traders, growers and auctioneers, they said.

Inadequate rainfall this season in the growing areas mainly in Kerala's Idukki district had adverse impact on the late crop and if this situation persisted the next season could be negatively affected, official sources pointed out.

The prices of the graded varieties at the last auction were AGEB Rs 620 - Rs 630, AGB Rs 465 - Rs 475, AGS Rs 450 - Rs 460 and AGS 1 Rs 430 - Rs 440 per lg. Meanwhile, the running bulk was sold at Rs 400 per kg and the medium bulk at Rs 370. Superior grade 7 mm bold of average colour was available at Rs 550 - Rs 600 per kg, market sources said.

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