According to trade sources, within a span of nine days, cardamom has shed about Rs 90 a kg at the auction centres. This is in tandem with the boom in arrivals at these auctions centres both in Kerala and Tamil Nadu. "With the third round of pickings about to begin now, we fear that prices may still dip further," an auctioneer told The Financial Express.

After having closed the last week at an average price of over Rs 480 per kg, cardamom opened on Monday with an average price of Rs 424.50 per kg at the Cardamom Producers' Association Auction of Kerala at Bodinaikanur. At this auction 17 tonnes of this commodity was sold. This is the biggest single drop since the new season auctions began on August18, traders said.

During the last week, enquiries for export to countries in Gulf and Japan haS propped up the price of cardamom despite the heavy arrivals at the auction centres. However, the third round of pickings, expected to begin next week, will in all likelihood further depress the prices.

Along with it has come heavy showers at the cardamom growing regions of Kerala, Tamil Nadu and Karnataka. The showers are likely to further increase the production of cardamom this season.

A total of 605 tonnes of cardamom has been sold through the auction centres while as much as 300 tonnes are estimated to have been sold directly to buyers by the farmers. This brings up the total quantity of cardamom sold so far this season to about 1,000 tonnes. In the new season cardamom has fetched an average price of Rs 474.73 per kg notwithstanding the drop in prices during the week under review.