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Cardamom prices up on heavy demand

G.K. Nair

KOCHI, July 13

CARDAMOM prices increased on heavy demand and short supply in the primary markets in Kerala and Tamil Nadu.

The price of ungraded bulk capsules went up by Rs 20-30 per kg to Rs 630-640 per kg over the prices a fortnight ago, market sources told Business Line on Friday. The average price had thus gone up from Rs 574 per kg to over Rs 600, they said.

Attributing the rise to heavy demand from upcountry markets, especially Delhi, Mumbai and Kolkata and better export enquiries, they said given this trend, the price of bulk cardamom would cross Rs 700 a kg in the weeks to come. On the other hand, arrival s were very thin as traders and major growers were holding back the stock anticipating further increase in the prices, they said.

Unprecedented export enquiries were pouring in from European countries such as France and the UK and it indicated a good future demand from the European Union, they said.

Similarly, the domestic demand was also expected to be higher in the coming months due to ensuing festivals such as Dusserah, Diwali and Ramzan. Hence, a good demand was expected

between September and December.

Meanwhile, uncertainty hovers over the Guatemalan cardamom crop this season also. Guatemalan cardamom normally entersd the market by the end of the year. However, there are reportedly some problems in Guatemala because of the rampant theft and other inte rnal crisis which are likely to affect the cardamom harvesting and supply.

The present arrivals are about 5-6 tonnes daily. But the entire quantity is bought by middlemen who graded it and smuggled out to Cumbum, Bodinayakannur and Thevaram. From here, the commodity is transported to upcountry markets depriving the State Govern ment of sales tax, according to them.

The first crop of the current season is expected to be delayed. The favourable weather conditions, however, is likely lead to a better crop this year.

The Spices Board, official sources said, was convening a meeting of officials, traders, farmers, auctioneers and exporters in the last week of July to chalk out marketing strategies, auction procedure and crop monitoring.