| G.K. Nair
Kochi, Aug 5 Cardamom prices moved up last week on thin arrivals at auction centres in Kerala and Tamil Nadu. The main reason attributed to the drop in arrivals is incessant rains and the accompanying winds in the growing areas which disrupted picking. In fact, only last week, the growing areas received good rains during the current south-west monsoon.
Arrivals
The good arrivals since June last were because of the extended summer showers. But, during May to July, there were no showers and that might negatively affect output, market sources told Business Line.
Even now, the growing areas are getting rains and that could change the situation, they said. However, the supply is likely to remain tight in the coming weeks, they claimed.
The arrivals on Monday at the CPA auction in Bodinayakkanur stood at six tonnes and almost the entire quantity was sold out. Maximum price fetched was Rs 637.50 and the minimum, Rs 489. The average price stood at Rs 560.42. At the Sunday auction of KCPMC, Kumily, at Vandanmettu, the arrivals were15 tonnes. Maximum price increased to Rs 726 and the minimum, Rs 486 a kg. The average price went up to Rs 583.
No exports
North Indian buyers were active. However, there was no export buying last week, probably due to higher prices. The market was steady with an upward swing, according to Mr P.C. Punnoose, General Manager, CPMC. The bulk accounted for 20 per cent of it with 8mm bold fetching Rs 600 and above a kg.
Total arrivals during the current official season from August 1 to 3 stood at 36 tonnes as against 43 tonnes during the same period last season. The sales were 35 tonnes compared with 39 tonnes.
Weighted average was Rs 576.12 as against Rs 391.16 a kg. However, the official season ended on July 31 with total arrivals of 5,828 tonnes as against 8,352 tonnes of the commodity in the previous season registering a fall of 2,524 tonnes. Similarly, the sales also dropped by 2,175 tonnes to 5,494 tonnes from 7,669 tonnes.
The weighted average price stood at Rs 507.84 a kg as against Rs 315.27 the previous season. Thus, the prices of cardamom remained better all through the last season. |