Cardamom prices is expected to remain steady and firm with supply thinning out and exports looking good due to global shortage, traders said. Fresh arrivals at the auctions are less and the quantity on offer is down by 50%, KK Devassia of Cardamom Growers Association told FE.
Arrivals had touched 80-85 tonne during December 2009. Supply reaching the auction centres is now in the range of 20-25 tonne as the peak harvest season has been completed in key growing areas, he added. Auctions will continue up to May sustained by stocks held back by the growers.
Some traders see a shorter crop also helping in the firmness. There are contradicting reports on production prospects. One view is that the crop should be back to 2007-08 levels on account of the adverse weather pattern and the other view is that the production would be higher on account of higher price realisation during 2008-09. Cardamom production in India during 2008-09 was estimated to be higher at 12,000 tonne compared to 9,500 tonne in 2007-08. Farmers? organisation like the Cardamom Growers Association estimates, the 2009-10 crop to be lesser by almost 30% from the last crop.
Imports from Guatemala, which tend to depress the domestic market, have been almost nil during the last two year. Rains and flood in the cardamom producing regions of Guatemala have kept the global prices on the higher side.
