During the week under review, good quality cardamom sold higher by Rs 40 to Rs 50 per kg over the previous week when trade sources had predicted a fall in the price in the wake of substantial arrivals, particularly from the cardamom growing areas in Kerala.

Along with a bunch of small quantity orders for exports, the elections too have indirectly helped support the prices. The polls kept most cardamom growers away from their plantations stopping pickings for a few days, sources said. As a result, there was a little lull in the arrivals during the week-ended Friday, they added.

While the growers are heaving a sigh of relief with the Gulf market, particularly Saudi Arabia, once again turning to Indian cardamom, Japanese orders too are spreading cheer amongthem. A grower in Santhanpara told The Financial Express

that he expected the prices to hold because "Indian cardamom is once again in demand in the Gulf" which was the major export destination for the produce from the country for over three decades.

Guatemalan cardamom riding its fortunes on low production cost in the late 1980s stormed India's traditional export markets. This plunged the future of growers in India into uncertainty and the price of cardamom in the domestic market had drifted below Rs 250 per kg at one time. Now Indian cardamom looks set to make a comeback if the current trends persists for the season.At least three cardamom buyers are known to have received orders worth a total of 8 tonnes for exports, sources added. During the previous week another 8 tonnes were reported to have been bought for exports. Sources said that since these buyers have short-term commitments, they will not wait for the prices to fall or bide their time to be active at the auction centres.

Along with abunch of orders for exports have come the ensuing festive season and upcountry buyers are getting more active at the auction centres. As a result, during the week ending September 18, price of freshly picked cardamom rose to more than Rs 450 per kg vis-a-vis the previous week when the auctions had closed at an average price of Rs 417 per kg.

An office-bearer of the Cardamom Planters' Association said that he was expecting both exporters and upcountry buyers to be active in the market for a longer period of time than expected. This is contrary to earlier reports that farmers reaping a bumper harvest may have to sacrifice good price if they want their produce sold.So far during this season, a total of 399 tonnes of cardamom has been sold through the auction centres. This is a tremendous improvement over the previous year when only 76.5 tonnes of cardamom was sold during the same period. On Monday, the Cardamom Producers' Association auctions saw a total sale of 4,800 kgs at an average price of Rs 425.81 perkg. This is against the sale of 2,400 kgs at an average price of Rs 391.00 per kg on September 6.

On September 18, auctions held by Cardamom Producing and Marketing Company saw a total sale of 22 tonnes at an average price of Rs 464.10 per kg against the average price of Rs 417.28 per kg on September 7.