Thanks to the early rains in the cardamom growing areas in Karnataka, Tamil Nadu and Kerala, the cardamom season which usually begins in August and ends in May, will have an early start this year. The farmers are also happy that they can expect a bumper crop compared to the estimated 40 per cent drop in production during the current season.

Only two auctions were held during last week. The first one at Kumali on May 25 saw the sale of 23,500 kgs of cardamom at an average price of Rs 639 per kg. The auctions were held by Cardamom Producing and Marketing Corporation (CPMC). In the second auctions at Bodinaikanur by Mas Enterprises saw the sale of 36,156 kgs of cardamom at an average price of Rs 644 per kg.

In the previous week ending May22, cardamom prices reached an all-time peak of Rs 660 on an average at the auctions held by Indian Cardamom Marketing Corporation (ICMC) at Cumbum.

The highest price at the auction was Rs 830 per kg, the lowest Rs 240 and the average price Rs 660 per kg, sources said.

Trade sources told The Financial Express that with the shortage of cardamom in the market now, prices will either continue to rise or hold firm till the beginning of September.

The price for the ensuing season will be determined by the crop expectations for the new season, they said. Good rains are expected to bring a bumper crop, farmers in Kerala say.

In the new season, prices are not expected to slip too sharply because of the current supply levels. Unofficial estimates say that production this season has been down about 40 per cent. Added to this is the fact that Guatemalan cardamom production has fallen from the earlier 14,000 tonnes to 10,000 tonnes. This ensures that Guatemalan produce will not flood the Indian marketearly next season at least.

Meanwhile, acute shortage of cardamom had forced Cardamom Producers' Association (CPA), Spices Trading Corporation (STC) and Kerala Cardamom Producing and Marketing Corporation (KCPMC) to suspend auctions early last month.