Cardamom prices continued to be under pressure on higher arrivals amidst slack demand at auctions last week.

The average price of cardamom at the auctions vacillated between Rs 530 and Rs 570 a kg, dropping marginally.

North Indian buyers were inactive, though they absorbed whatever material arrived in the market, sources said.

Exports

However, exporters were active and bought some 70 tonnes at Rs 650-700 a kg.

Availability of exportable variety was in short-supply, they said. Climate change and excess bearing of cardamom is attributed to the reduction in the size of capsules, they said.

During the current season, from Aug 1, total arrivals up to December 15 were 10,086 tonnes against 5,496 tonnes during same period a year ago. Sales were at 9,841 tonnes (5,230 tonnes).

The weighted average price stood at Rs 601.08 (Rs 767.16).

Arrivals

According to market sources in Bodinayakannur, the hub of cardamom trade, tight money supply coupled with high arrivals is pointed out as reason for the decline in prices.

Total arrivals at the Sunday auction of the KCPMC decreased to 96 tonnes from 109 tonnes the previous Sunday and the entire quantity was sold, P.C. Punnoose, General Manager, CPMC, Kumily, said.

He said the maximum price increased to Rs 865 from Rs 823 and the minimum rose to Rs 402 from Rs 345.

The auction average moved up to Rs 569.52 from Rs 561.58 the previous Sunday, he said.

According to some traders, growers need to get Rs 600-650 to breakeven as the picking and drying cost alone will come to Rs 300.

Prices of all the graded varieties declined marginally last week and their prices in Rs/kg were: AGEB: 690-700; AGB: 575-585; AGS: 535-545; and AGS-1: 515-525.

(This article was published on December 16, 2013)