Cardamom auctions begin on a high note

KOCHI: The cardamom auctions for the new season have begun on an optimistic note on the price front though the harvest is yet to go into full swing. The first auctions of Cardamom Processing and Marketing Co-operative Society (CPMC) and by Kerala Cardamom Processing and Marketing Co-operative Society (KCPMC) began in Kumily on Wednesday with the average price touching Rs 401 per kg on low arrivals.

The arrivals were just 25 tonnes as the harvest season had just started. CPMC general manager PC Punnoose said only 5 tonnes out of the total arrival came from new harvest. The rest of crop was carryover stock from last season. Last year when the auctions began with the prices were in the range of Rs 235-240 per kg. But later it climbed up to end at an average of Rs 350 per kg for the season. But this time the traders and growers are expecting a higher average price as the crop is expected to be lower than last year.

The combination of drought some months back and the heavy rains now had wrought heavy damage on cardamom crops. The crop in last season is estimated to be around 10,000 tonnes. This time it could be 20 to 30% lower.

But a clear picture will emerge by the middle of August when the production stabilises, Punnoose said. The e-auction is also expected to begin around that time.