Indian cardamom prices continue to retreat
CARDAMOM prices continued their downward trend last week on weak buying support at auctions held in Kerala and Tamil Nadu.
The individual grades average prices fell by over Rs50 ($1.2358) a kg during last week from that of the previous week.
The reasons attributed to the gradual decline included no sales in the upcountry markets, entry of Guatemala cardamom in the north Indian markets and withdrawal of buyers anticipating an early next crop because of the recent rains in the growing areas. Because of the declining trend buyers are keeping away from the market, trading sources told Business Line. Prices dropped despite continuously thin arrivals.
The maximum price at KCPMC auction on Sunday was Rs619 a kg and minimum Rs385. Average price dropped to Rs533 a kg. Arrival of 8mm bold was negligible and it was fetching Rs620 to Rs630 a kg.
According to market sources in Bodinayakannur, Indian cardamom is reportedly being offered at $17.5 a kg while Guatemala is offering at $14 a kg.
The landed cost, even after paying the duties, remained far below the indigenous price and hence the imported product is arriving in the north Indian markets. Even the imported cardamom finds its way into the auctions in Karnataka, they alleged.