Cardamom prices were on the rise on fear of delayed supply following non-arrival of the South-West monsoon in Kerala’s Idukki district – the main cardamom growing tract in the country.
Arrivals last week declined to around 365 tonnes from about 405 tonnes the previous week.
After mid-May there has not been any rains in the growing regions so far and such a situation could have impact on the crop, such as falling of immature capsules, etc, PC Punnoose, General Manager, CPMC, told BusinessLine.
He said regular buyers were not active in the market. But, small dealers were actively purchasing small volumes and as a result, the entire material arrived in the market was being fully absorbed.
Fear of a fall/delay in supply in the coming weeks because of change in the weather conditions has created a bullish sentiment in the market and that in turn has pushed up the prices by around ₹30 a kg, he said.
According to Ranganathan, a dealer in Bodinayakannur, the arrivals remained squeezed and the fresh crop arrived was small in volume and of medium quality. The delay in monsoon’s arrival has created a fear psychosis in the market here and that in turn has aided a price hike.
He said good quality cardamom from the new crop is expected to begin arriving in the market from end-July or early August.
Exporters continued to remain slow because of non-availability of exportable grade 7mm and above material. However, they have bought an estimated 25 tonnes of cardamom last week.
At the Cardamom Planters’ Association auction held in Bodinayakannur today, a total of 17.4 tonnes cardamom arrived against 20.6 tonnes last Monday and the entire quantity was traded. The maximum price was at ₹865 a kg and the auction average increased to ₹648 afrom ₹634.47 last Monday.
The individual auction average gained last week and was vacillating between ₹630 and ₹700 a kg.
Total arrivals during the season up to June 13 stood at 20,354 tonnes (20,761 tonnes). The sales were at 19,782 tonnes and 20,047 tonnes respectively.
The auction average as on June 13 was at around ₹660 (₹720) a kg.
Prices of graded varieties (₹/kg): 8mm bold green 975-985; 7-8mm 825-850; 6-7mm 700-720; below 6 mm: 600-625.