Cardamom posts modest gains at auctions

Cardamom prices rose modestly on steady demand at the weekly auction held by Cardamom Processing and Marketing Company here on Wednesday, compared with a week ago, dealers said today.

Price also moved up at the auction held today at Bodinayakanur in Tamil Nadu on improved demand, they added.

Average price of cardamom moved up to Rs 602 a kg from Rs 595 a kg at the CPMC auction, while at the auction held at Bodinayakanur today it rose to Rs 612 from Rs 592 last week, dealers said. Prices may remain at high levels of Rs 590-600 a kg in the week ahead because of the overall decline in output by 25-30 per cent, dealers said.

Although intermittent rain at cardamom growing areas in Kerala have improved prospects for an increase in yield, it will not make a major impact on availability of the commodity, they added.

At Wednesday's CPMC auction, premium 8mm grades rose to Rs 680-700 a kg from Rs 650-680, while 7-8mm grades moved up to Rs 640-680 from Rs 620-660 a week ago.

Current bulk grades remained steady at Rs 590-610 a kg, while average price moved up to Rs 602 from Rs 595 last week.

Total supply stayed flat at 20 tonne at the CPMC auction, while exporters bought around one tonne.

Total supply at the auction held at Bodinayakanur rose to 25 tonne from 13 tonne a week ago. However, nearly 50 per cent of the arrivals comprised old stock, dealers said.