Cardamom prices are under pressure over reports of a bumper crop and the new crop trickling in early, traders said. Resumption of cardamom auctions have seen the market ease by Rs 100 per kg in just one week, PC Punnose of Cardamom Processing Marketing Company (CPMC), Kumily, told FE. ?Reports of a good crop are likely to lower the market, but a sudden crash of Rs 100 in just one week was surprising,? he added. In the last auction of CPMC held on June 29, the average price dropped down to Rs 510 per kg as against Rs 615 for the auction held on June 22. Kerala Cardamom Produce Marketing Company saw the average price down by Rs 40 in two consecutive auctions. Average price had peaked to a high of Rs 750 per kg in the last season due to lesser availability of quality cardamom.
Prices were expected to ease with farmers and traders estimating the new crop to exceed 13,000 tonne as against 7,000 tonne in 2007-08. Cardamom Growers Association also expects the price to soften a little but expects the total realisation of the farmers to increase given the larger crop.
Meanwhile in the futures exchange, trading in cardamom has come down with no participation and volumes.