Good demand from both export and domestic markets has kept the cardamom prices nearly steady last week despite rise in arrivals at the auctions .

Having lost hope of a rise in the prices, which have been ruling steady for several weeks, the growers/primary market dealers were releasing their stocks and that has created a surge in the arrivals.

However, the rise in supply has not pushed the market down due to good export buying following arrival of good colour capsules of 7mm and above.

Exporters are estimated to have bought around 120 tonnes of the material at Rs 850-875 a kg last week, P.C. Punnoose, General Manager, CPMC. told Business Line.

Bold capsules having good green colour are not available from any other sources and hence it is bought by exporters for the select markets overseas which preferred this kind of material, they said.

Arrival of this variety of material constituted 15 to 20 per cent of the total arrivals, he said.

Similarly, the upcountry buyers having liquidated their stocks were also covering as the prices were moderately good.

Auction prices

Thus, there has emerged a good buying support which in turn has arrested a potential decline in prices last week following increase in arrivals, trade sources in Bodinayakannur said.

The individual auction average continued to stay below Rs 700 a kg and vacillating between Rs 610 and Rs 690 a kg for over a month now.

Much of the material arrived in the market at present are of inferior quality from the last round of picking and that has been keeping the prices low. This kind of material was also responsible for the poor prices, they said.

The harvesting of the current crop is over now. Whatever material arrives at the market now is of stock held by the farmers.

Last Sunday there was no auction on account of Tamil New Year. At the Saturday auction, 44 tonnes of cardamom arrived and of this 41.6 tonnes of the material were sold. The maximum price was at Rs 848 while the auction average stood at Rs 628.14.

Arrivals

Total arrivals and sales during the current season from August 1, 2012 to April 13 were at 10,915 tonnes and 10,397 tonnes respectively. Total arrivals and sales during the corresponding period last year were at 16,068 tonnes and 15,561 tonnes respectively.

The weighted average price as on April 13 stood at Rs 745.09 against Rs 609.49 on the same date last year.

Prices of graded varieties (Rs/kg): AGEB 890-900; AGB 640-650; AGS 625-635 and AGS -1: 600-610.

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