Cardamom prices to stay high

Cardamom prices are expected to rule high during the next couple of months despite recent arrivals at auction centres, on news that production in Guatemala is likely to be hit due to heavy rain and landslides.

For the current week, average prices rose to Rs 230-240 per kg from the Rs 210-220 range, a week back. Prices in futures trading also indicate better price realisation for December and January 2006.

Interestingly, the market continues to show signs of maintaining high price levels despite arrivals to auction centres having doubled this season.

According to Spices Board estimates, arrivals during teh August to November period rose to 3,231 tonne from just 1,936 tonne for the same period in 2004.

Traders said with production in Guatemala likely to be less than expected, overseas buyers""especially from the Gulf"" have shown interest in Indian market. The traders also said the extent of shortfall in Guatemala will not be know till crops hit global markets in January next year.

However, C J Jose, chairman, Spices Board told Business Standard that the board had not received any information about a possible drop in production in Guatemala.

He said that arrivals to auction centers had improved considerably because traders had begun releasing old stocks, adding, total production this season was expected to be around 12,000 tonne.

Meanwhile, torrential rain has hit crops in some parts of Idukki district in Kerala but the overall production level would not be affected.

The highest going price this season was Rs 438 and the lowest being Rs 70 on and the weighted average price stood at Rs 232.32 - 234.93. But the average price for November ruled steady at Rs 215-230 level.

Total exports for 2004-05 was 650 tonne, which valued at Rs 23.90 crore while exports have already touched the 225 tonne mark in the first-half of the current fiscal, valued at Rs 7.56 crore.