Cardamom prices continued to surge on domestic and export demand during last week at the auctions held in Kerala and Tami Nadu. The average price vacillated between Rs 835 and Rs 860 a kg.
The situation has reached such a stage that there is no cardamom available now lower than Rs 700 a kg, traders said. Even at the CPA (Cardamom Planters Association) auction on Monday held at Bodinayakannur where the prices used to be comparatively low due to inferior quality of the material, the average price stood at Rs 832.55 a kg. The highest price there was Rs 911.50. Total arrivals were at 20 tonnes, of which one tonne was withdrawn. It clearly shows the strong market trend, Bodinayakannur-based traders said.
Scarcity of materials
Exporters and upcountry dealers were actively buying despite the high prices. “Even at this level overseas buyers are ready to buy and it clearly demonstrates the scarcity of the material in the markets abroad due to non-availability of quality material from the lone other source, Guatemala,” a trader said. Arrivals showed a declining trend and it seems to have created an apprehension among the buyers that there could be a squeeze in the coming weeks, which in turn, pushed up demand, Mr P.C. Punnoose, General Manager, CPMC, told Business Line.
He said that at the KCPMC auction on Sunday 64 tonnes of cardamom arrived and the entire quantity was sold out. The maximum price was at Rs 981 a kg, which was probably the highest price fetched so far during the current season, while the minimum was Rs 650 a kg. The individual average price was at Rs 848.76 a kg, he said. Exporters on Sunday bought 15 tonnes of the produce, he said.
Demand from overseas and upcountry markets due to non-availability from other sources and increasing consumption might stabilise the price at the current levels during the current season, traders said.
The production this year has so far been showing a significant increase from that of the previous season. It is evident from the arrivals at the auctions, they said. The current situation indicates a mismatch between demand and supply, with the former outweighing the latter, they claimed. Total arrivals during the season from August 1 to December 20 stood at 5,564 tonnes. Of this, 5,466 tonnes of cardamom were sold. Arrivals and sales in the same period last season were 4,555 tonnes and 4,274 tonnes respectively.
Weighted average price as on December 20 during the current season increased to Rs 716.45 kg from Rs 540.38 a kg as on the same day last year. Prices quoted for graded varietieswere: AGEB Rs 955 – Rs 965; AGB Rs 895 – Rs 915; AGS Rs 885 – Rs 895; and AGS1 Rs 875 – Rs 885 a kg. Prices in the open market in Bodinayakannur were AGEB Rs 935 – Rs 945; AGB Rs 875 – Rs 885; AGS Rs 865 – Rs 875; and AGS1 Rs 855 – Rs 865.
Bulk was fetching Rs 810 – Rs 975 a kg. Growers in Kumily said that 90 per cent of the cardamom growing areas, except Kumily and Vandanmettu region, received good rains during the week and that would help improve the late crop.
Source : Business Line