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The traders and farmers’ fraternity are worried about a sudden plunge in cardamom prices in the ongoing lean season. After hitting a high of Rs 1,500 per kg in last two years, cardamom prices are fluctuating between Rs 750 and Rs 800. On the other hand, low prices could augur well for exports. The prices which were hovering around Rs 1,000 per kg last week has dropped to around Rs 700 per kg. The price drop can be attributed to heavy supplies during the May lean season.
An early rain during the year adds incremental supply in the lean season. Cardamom harvest normally starts in month of July but early rains may advance the harvest in month of June, resulting in low prices in the next few weeks.
In May last year, Cardamom prices were hovering around Rs 1,100 per kg. They climbed to Rs 1,500 per kg before stabilizing around Rs 1,000 per kg. With the expectation of better prices in May, planters have held over their stocks but are now forced to sell them at lower prices before the next season. This low price gives a push to exports. Cardamom export fell to 865 tonne for the 11-month period ended February 2011 compared with a record 1,975-tonne shipment in 2009-10.
The largest cardamom producer - Guatemala, is step ahead of India in the international market with low prices during the year. Guatemala sold cardamom for around $23 per kg, which was $3-4 lower than the Indian prices. However, the country will not be able to take full advantage of the drop in domestic prices till the new crop arrives.
Besides huge stocks remaining with planters are getting released to the market now but most of them are not of exportable quality as the inventory has been with the producers for some time. Cardamom with faded green colour doesn’t have good demand, in the main market of Saudi Arabia.
In the last two years the planters made a lot of money due to high prices, so most of the planters are now reluctant to sell below Rs 1,000 per kg. Better stock will be available for exports when supplies pick up by July. Spices Board is closely monitoring the situation as the price plunge was unexpected.
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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