The Hindu : Business : Short supply to keep cardamom prices high

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Thursday, Jan 13, 2011
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Short supply to keep cardamom prices high

Staff Reporter

Thrissur: The short supply and high demand will keep the price of cardamom high in the coming months, according to the Agricultural Market Intelligence Centre (AMIC).

The AMIC had released the first price forecast for cardamom in July.

The forecast indicated a fall in prices from October 2010. Cardamom prices in India witnessed unprecedented speculation in October following unconfirmed news about the arrival of about 20,000 MT of cardamom from Guatemala. Based on the latest traders' survey, the AMIC has predicted that domestic cardamom market would be strong, as the speculation about the arrival of Guatemalan cardamom has proved wrong.

The centre says there is a dip in the production of cardamom in Kerala due to heavy rain. Market arrivals are also slowing down.

The market studies indicate good domestic demand of cardamom. Demand

from North India will also remain high till the festival season ends with Holi, says the centre. Countries like Saudi Arabia have started placing orders from India. The widening demand-supply gap is thus expected to perk up cardamom prices further.

Based on the above trends, the prices expected to prevail for the next three months for the cardamom Alleppey Green Extra Bold (AGEB) are Rs.1,500-1,700 in January, Rs.1,600-1,800 in February and Rs.1,800-2,000 in March. The price of non-graded cardamom lot (bulk) is expected to be Rs.1,500-1,700 for the next three months.

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