Cardamom gains flavour on demandUpdate: 9/17/2013
Cardamom gained flavour on good buying support after the Ramzan sales and consequently the prices moved up at auctions held in Kerala and Tamil Nadu .
“Good sales during Ramzan and the festival days seem to have led to good buying by exporters and that in turn aided the price rise,” trade sources in Kumily and Bodinayakannur told Business Line.
According to the trade, good export inquiries were pouring in but the overseas buyers were said to be quoting $12-14 a kg claiming that Guatemala was offering at lower rates. Weakening of the rupee is said to be one of the reasons for quoting lower rates, they said. However, exportable grade capsules i.e., 7mm – 8mm size bold green cardamom havent yet started arriving in good volume and that phenomenon also seems to have slowed down export buying, they said.
Export buying last week is estimated at some where in the range of 30-40 tonnes, they said. Exportable varieties of capsules would come from the second round of picking which is expected to commence by the month-end. Last week total arrivals showed a decline because of the disruption in picking and decaying of capsules due to incessant rains. Any way, now the weather conditions have improved and there has been a reduction in the rains from late last week, they said.
Individual auction average, which was vacillating between Rs 560 and Rs 600 a kg, has touched around Rs 640 . However, according to the growers, anything below Rs 750 would not be remunerative given high input costs, especially the high labour wages.
Total arrivals at the Sunday auction held by KCPMC increased to 70 tonnes from 65 tonnes on the previous Sunday and the entire quantity was sold out, P.C. Punnoose, General Manager, CPMC, told Business Line.
The maximum price was at Rs 996 and the minimum at Rs 439. The auction average price went up to Rs 638.05 from Rs 576.19 from at previous Sundays level. The current season has begun officially from Aug 1 and hence the total arrival during the season stood at 537 tonnes as against 610 tonnes during the same period last season. The sales were at 533 tonnes and 579 tonnes respectively.
The weighted average price as on Aug 11, 2013 stood at Rs 592.03 against Rs 809.85 on the same date last year.
Prices of graded varieties (Rs/kg) : AGEB 800-810; AGB 590-600; AGS 570-580 and AGS -1: 550-560. Bulk was being sold at Rs 400-950 a kg.