Business Daily from THE HINDU group of publications
Wednesday, Aug 30, 2006
Agri-Biz & Commodities
Spices & Condiments
Cardamom prices fall Rs 20/kg
Thin arrivals indicate there will be a decline in production and it could have a positive impact on the prices.
Kumily , Aug. 29
Cardamom prices, which had shot up by Rs 120 a kg in a fortnight, have dropped by Rs 20 at the auction held by Kerala Cardamom Processing and Marketing Cooperative Society here on Sunday.
A total quantity of 54 tonnes arrived, of which three tonnes were withdrawn.
Exporters were active and bought 10 tonnes.
The rest was bought by North Indian dealers. 8mm bold fetched the maximum price of Rs 537 per kg while 7mm was sold at Rs 420-435. Current bulk was fetching Rs 390-400 per kg.
Unlike in the past, this year prices shot up at the beginning of the season itself by Rs 120 per kg.
"It showed that there were no carryover stocks in the consumer markets," Mr P.C. Punnoose, General Manager, Cardamom Processing and Marketing Company, Kumily, told Business Line.
Besides, the North Indian demand seems to be on the upward trend due to the ensuing festival season.
The current decline is only a technical correction and the market sentiments are that the prices might bounce back, he said.
According to him, the prospect for cardamom appears to be brighter this year.
The thin arrivals unlike last year indicate that there is going to be a decline in production and that would have a positive impact on the prices, he said.
The weather conditions in the growing belt have not been very favourable this year so far, planters said.
Drop in average price
However, the average price on Sunday dropped to Rs 380 per kg and this has disappointed the growers, who said that it should not fall below Rs 400, as any further decline would make it un-remunerative.
Even some of the traders have expressed the same opinion.
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