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Monday, May 4, 1998

Cardamom auctions to continue beyond May 

KA Martin  
May 3: Spices Board has instructed all cardamom auction centres in the country to continue auctions beyond the conclusion of the harvesting season, if they are viable, to prevent an unhealthy price rise in the domestic market during the off season. According to sources in the cardamom trade here, if an auction centre has to discontinue auctions after May 31, it now will have to take permission from the Spices Board.

The order comes after discussions between growers, traders and auctioneers, sources said. However, it is learnt that traders, mostly at upcountry centres, are keen to see this season's auctions end quickly in view of a reported shortfall in cardamom production. "Stocks are down and it is likely that prices will move up after September," said a source in Kochi.

Some of the small-time growers are keen to see the end of the auctions to be able to settle the accounts for the year, sources added.

While the Spices Board aims at controlling domestic price of cardamom, it is eager that auctions beheld only if sufficient amount of the produce reaches the auction centres. "Generally," said a grower in Idukki, "not much of cardamom reaches auction centres in June and July." This year production has been hit by the continuing heat wave conditions in the state, he added.Sources in the Cardamom Marketing Corporation (CMC) at Vandanmedu, on the Kerala-Tamil Nadu border, feels that only about 700 more tonnes of cardamom may reach the auction centres this season. "This is bound to boost the price of cardamom in the domestic market," he said.

Of the expected 6,000 tonnes of production this season, about 5,000 tonnes has been sold at the auction centres. About 1,000 tonnes is reported to have been directly sold. What remains to be harvested is another 100 to 200 tonnes.

But there is a perception that about 6 to 7 tonnes of cardamom is being held back by growers who are waiting for the prices to move up after June. An indication of this was available at the Spices Trading Corporation (STC) auction centre atBodinaikanur on last Thursday when one tonne of cardamom was withdrawn from auctions out of a total arrival of 8.5 tonnes.

Similarly, on last Monday, 5,500 kgs of cardamom was withdrawn from a total arrival of over 27,000 kgs at the Cardamom Producers' Marketing Corporation (CPMC) at Kumali in Kerala's Idukki district.

Once again, growers having small holdings are unlikely to reap the benefits of holding back the produce. Big estate owners with proper storage facilities can hold back the produce till the end of June to realise better prices. But the small farmers, facing liquidity crunch, are generally forced to sell the harvest in quick time.

Meanwhile, farmers in some of the cardamom-growing areas in Idukki district have reported receiving scattered rain in these areas. These farmers expect better rain. While the light showers, coming at the fag end of the current season, will not help crops, it can prevent the plants from drying up.The price of cardamom at the auctions continued to move in narrowbands.

This week, the price of cardamom went up Rs 10 a kg on an average, say figures provided by the CMC. At the STC auctions on Thursday, the average price of cardamom stood at Rs 330 a kg compared to the average price of Rs 328.97 a kg at the auctions in Kumali on Monday. At the Kumali auctions, 27,207 kgs arrived for sale. Of this 21,659 kgs was sold. At the CMC auctions, 8.5 tonnes of cardamom arrived and was completely sold.

Since January, cardamom price has moved up consistently to touch an average of Rs 327-360 per kg. The bolder varieties (7 mm or bigger) have fetched even a higher price of Rs 450-470 a kg. This was lower in the second week of April with prices ranging between Rs 316 and Rs 321 a kg.

At the auctions on April 14, cardamom fetched the average prices of Rs 321.94 at Kumali, Rs 342.50 at Vandanmedu and Rs 316.64 at Bodinaikanur.Between August last year and the second week of this April a total of 28,95,359 kgs of cardamom has been sold through the centres in Tamil Nadu and Kerala.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.



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