COVID affects cardamom auction prices

As the main season for cardamom is coming to a close, COVID-19 has impacted auction and marketing with the prices remaining almost inflexible throughout the season.

Sources said that auction was affected at the Spices Park in Puttady due to transportation problems for businessmen coming from Tamil Nadu.

The main centres of cardamom auction are at Puttady and Bodinayakanur in Tamil Nadu. The farmers in the district depend on the cardamom auction at Puttady. The auction centre had remained closed for long.

After the auction was reopened, the average prices remained below ₹1,500 per kg. Many small scale cardamom farmers had to sell the beans at below ₹1,000 per kg when the auction remained suspended.

Those participating in the auction said that the cold response of the main buyers based at Mumbai was a reason for low prices.

In August 2019, maximum price for cardamom reached ₹7,000 per kg from ₹6,000 in July. “It was usual that prior to the festival season in North India, the prices of cardamom rule high. In addition to North India, Saudi Arabia is the main buyer. The pandemic has affected the export orders and demand in North India,” said an official of an auctioning firm. The highest price quoted at the auction held in Puttady on Friday was ₹2,012 while the average price was ₹1,453. To assure better price and market for cardamom, the farmers group has formed a consortium of online auction companies and begun e-auction.

The Vandanmedu Green Gold Cardamom Producer Company (VGCPC) and Vandanmedu Cardamom Growers Association started online auction for cardamom. The VGCPC conducted e-auction on Friday and 25,700 kg of cardamom was sold out.

K S Mathew, director and chairman, VGCPC Company Ltd said that as per the new Farmers' Produce Trade and Commerce Ordinance, 2020 anyone can conduct online sale for the produce without licence.

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Printable version | Jan 20, 2021 10:18:54 AM |

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