Contrary to expectations cardamom prices are on the rally as arrivals thin down after an early start of auctions, traders said. Average auction prices are seen higher by 50% when compared to the price of the comparable period of last season, PC Punnose of Cardamom Processing Marketing Company (CPMC), Kumily, told FE. In the last auction of CPMC held on Wednesday, average price realised was Rs 600 per kg as against Rs 400 per kg during August last year.
Crop setting began earlier in cardamom due to typical rains in March and auctions resumed in July after the monsoon breaks, as against the usual convention of August. Some auction houses did not take the customary break and continued the auction process as fresh crops trickled in by June end.
The volumes failed to pick up and arrivals are seen thinning down. Quantity put for bids are below 20 tonne in most of the auctions, he added. Usually arrivals pick up to 60-70 tonne per auction after 4-5 weeks of a fresh season. ?But this time arrivals have not picked up and likely to fall in the coming days,? Punnose said.
Experts point to lesser rains in May-June as the reason for the decline. ?It takes 90 days for the flower to turn into a fruit. Cardamom plants started flowering in March due to early rains resulting in harvest of fruits in July,? Punnose said. The revival of rains by July end is likely to bring some volumes only by October, he added.
