Despite a temporary setback, the cardamom prices are expected to rule steady in the coming weeks riding on Diwali demand and higher export enquiries.
The cardamom prices in the auction centres slid to Rs 650 to 665 per kg level from Rs 730 to 740 per kg in the past week. Improved arrivals to the auction centres have led to drop in cardamom prices.
The shortfall in cardamom output in Guatemala, the major global supplier, has increased the demand for Indian cardamom in the world market. According to a leading exporter, apart from the traditional markets in the Gulf, there have been export enquiries from European and South East Asian markets this year.
The arrivals which were averaging around 30 tonnes a day have gone up to over 40 tonnes with the harvest in full swing. The present trend in arrivals could continue in the coming days with cardamom output picking up steadily, traders said. But they feel the prices would stay within Rs 600 to 650 per kg range given the expected Diwali demand and higher export enquiries. After Ramadan, the Diwali demand is expected to shoot up by next month.
Another factor that may keep the prices steady is the higher export enquiries. The cardamom export in April-August 2009 period touched 320 tonnes compared to 195 tonnes in the same period of last year. The average price of Rs 673 per kg realised in the global market is higher by Rs 40 over that in the previous year. Last year the cardamom export stood at 750 tonnes.
Source: The Economic Times