The Hindu Business Line : Cardamom rules steady

Demand has picked up from north Indian markets. The buyers were active. Out of 94 tonnes of capsules that arrived at the auction conducted by the Cardamom Processing and Marketing Company (CPMC) in Kumily on Wednesday, 93 tonnes were sold out. North Indian stockists were buying directly. There was some export buying also, Mr P.C. Punnoose, General Manager, CPMC, told Business Line on Thursday. It seems that investors in commodities have started investing in cardamom because of the moderate and stable prices for the commodity in the market.

Fall in output

Another factor that contributed to the good domestic demand is a reported sharp fall in the production of cardamom in the world's largest producing country, Guatemala this year. As a result, the dependence on imported cardamom appears to have waned. Normal production in Guatemala was estimated between 23,000 and 25,000 tonnes.

However, export buying has not yet picked up this year, market sources in Bodinayakannur said. According to them export to Japan has so far been virtually nil and the reason they attribute is the import restrictions in force in that country citing presence of pesticide residues. As a result, no enquiries are forthcoming from that country, exporters said.

Japan used to be the second largest importer of Indian cardamom after Saudi Arabia. In 2004 - 05, exports of cardamom to Japan stood at 257 tonnes valued at Rs 8.33 crore while it was 218.80 tonnes worth Rs 9.60 crore the year before. Its imports in 2001-02 were at 239.85 tonnes valued at Rs 15.30 crore while it increased to 242.67 tonnes the next year valued at Rs 16.58 crore.

Shipments of cardamom during April - October 2006 have showed a decline from that of the same period the previous financial year. As against 385 tonnes valued at Rs 12.51 crore in April-October 2005 the exports in the corresponding period this fiscal stood at 310 tonnes valued at Rs 9.65 crore. The unit value also dropped to Rs 311.21 a kg from Rs 324.94 a kg last year. The weighted average price as on December 06 last was Rs 307.06 a kg compared to Rs 227.86 a kg on this date the previous year.

The prices of graded varieties were: AGEB Rs 365 - Rs 375 a kg, AGB Rs 280 - Rs 290, AGS Rs 260 - Rs 270 and AGS 1 Rs 230 - Rs 240 a kg. The prices for these grades in the open market in Bodinayakannur on Thursday were AGEB Rs 340 - Rs 350, AGB Rs 270 - Rs 280, AGS Rs 245 - Rs 250 and AGS 1 Rs 225 - Rs 250. Bulk was being sold at Rs 250 - Rs 310 a kg.

The total arrivals during the current season stood at 3,499 tonnes of which 3,170 tonnes were sold. During the last season, as on this date, the arrivals were at 4,380 tonnes and of this the sales were at 4,092 tonnes.

The weather conditions in the growing regions continued to be favourable. The heavy arrivals of late, indicates that the farmers do not seem to hold back their produce and hence are releasing it when the price is stable and moderate at present.

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Cardamom rules steady