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‘e-auction has ensured transparency in cardamom trade’

KATTAPPANA: The introduction of e-auction for cardamom, the first in the country by the Spices Board of India, at Vandanmedu, near here, and Bodinayakkanur in Tamil Nadu, has ensured accountability and transparency in trading, according to market sources.

The e-auction was first begun at Bodinayakkanur with 30 computers in August last before it was launched at Vandanmedu in December with 60 computers.

Sources in the auction centres said e-auction was beneficial to both cardamom growers and traders by ensuring healthy competition among bidders. Unlike in open trading, the chances of manipulation and traders forming a cartel to keep the prices low was basically nil, they said. Trading was electronically monitored and the maximum price was fixed as quoted by the highest bidder.

The licensed seven auctioneers collected cardamom directly from the growers and a sample of 100 gm. was shown to the bidders before the auction. At the e-auction, each bidder got eight seconds to quote the price with the bidding rate ranges between 50 paise and Rs.9.

“Since each bidder is unaware of the price quoted by the rival bidder, the maximum price is ensured to the produce and a healthy competition prevails,” said a spokesman of an auction centre. Each licensed bidder is given separate days for holding auctions: Kerala Cardamom Processing and Marketing Company (KCPMC) — Sunday; Cardamom Planters’ Association (CPA) — Monday; Hedder Systems Pvt. Ltd. (HSPL) —Tuesday; Cardamom Processing and Marketing Co-Operative Society (CPMCS) — Wednesday; Spices Trading Corporation Ltd (STCL) — Thursday; Mass Enterprises Ltd. (MEL) — Friday; and Idukki Small Cardamom Marketing and Processing Society (ISCMPS) — Sunday.

In addition to these auctioneers, the Spices Board also holds auction in Wayanad and Kozhikode on Fridays.

The e-auction centre was launched using the Cardamom Development Fund with an initial capital of Rs.8 crore, raised from cardamom growers, who contributed Re.1 for every kg. of cardamom supplied for auctioning.

Cardamom is grown in 60,000 hectares of land in Idukki district, with Udumbanchola taluk accounting for the major chunk of total production.

The production is estimated at an average of 14,000 tonnes in the country, with Idukki alone contributing 12,000 tonnes.

Of the total production, only 700 tonnes of cardamom is exported and the rest goes for internal consumption, according to market figures.

Nearly 99 per cent of the total auctioned cardamom goes to Bodinayakkanur for processing, though grading is done at Vandanmedu.

“The favourable climatic condition, better transport facilities, availability of labourers and proximity to Vandanmedu makes Bodinayakkanur an ideal hub for cardamom business,” said an official of Mass Enterprise Ltd., a licensed auction firm.

Figures available at different auction firms show that in this season (August last to May), there has been a drop in production, which is estimated at 9,000 to 10,000 tonnes .

Though, the prices of cardamom went up to Rs.600-625 a kg. at the auction centre, it later dropped to Rs.400.

“Now the average price of cardamom a kg is Rs.500 to Rs.600,” said an official of an auction centre adding that the supply-demand factor contributed to the high prices and it cannot be expected to be steady in the coming days, as the new season is approaching.

The average volume of cardamom traded per week in Vandenmedu is 300 tonnes and it increases to 600 tonnes during the peak season.

With the introduction of Green Gold, a hybrid variety, there is production throughout the year, he said.

Cardamom being a highly sensitive crop, the season’s low production is attributed to unfavourable climatic conditions.

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‘e-auction has ensured transparency in cardamom trade’

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