The Hindu Business Line : Cardamom auctions set to resume

`Spicy' rates
Suspension of auctions for a fortnight has pushed up the prices by Rs 50-60 a kg in the open markets.
The average price has gone up to Rs 270 a kg now.

Kochi , Aug 8

Cardamom traders in Tamil Nadu and Kerala will resume trading activities from Wednesday following the Spices Board's assurance to look into their demands.

The Board has constituted a committee to study the demands of the traders, who have stopped trading for over a fortnight now, leading to suspension of auctions.

The committee headed by Mr S. Kannan, Director (Marketing) of the Board, will submit its report in three months after holding discussions with the parties concerned.

However, as the farmers are not willing to pay Rs 1.50 per kg on cardamom sold to bidding traders as cleaning and grading charges, this issue will not be discussed, he told Business Line on Monday.

The committee was constituted by the Spices Board Chairman, Mr V.J. Kurien, at a meeting held on July 31 attended by representatives of traders, auctioneers and growers, he said.

Trading sources said they would resume trading from Wednesday since the Board had agreed to look into their demands.

Grievances

Cardamom traders based at Bodinayakanur, Thevaram, Cumbum and Virudunagar in Tamil Nadu and Kumily in Kerala had decided on July 22, not to do any trade until their grievances were addressed by the authorities concerned.

The decision to boycott the trade has emanated from the recent decision of the Spices Board instructing the auctioneers not to collect any money other than the contribution to the Cardamom Development Fund (CDF) and one per cent commission from the farmers.

The decision, the traders claimed, would deprive them of Rs 1.50 per kg on cardamom (capsules up to 6.5 mm and bulk) sold to bidding traders as cleaning and grading charges.

"If the farmers are not willing to pay this amount they cannot be asked to do so, as it would turn out to be a violation of an existing court order on the issue," Mr Kannan said.

Prices rise

Boycott by the traders and the consequent suspension of auctions for over a fortnight has pushed up the prices of the aromatic spice by Rs 50-60 a kg in the open markets in Tamil Nadu, mainly Thevaram, Cumbum and Bodinayakannur. The average price has gone up to Rs 270 a kg now.

On an average, 150 tonnes of cardamom are sold through auctions every week. But, in the absence of trading at auctions, an estimated 50 tonnes of the commodity is smuggled into the trading centres in Tamil Nadu every week evading payment of tax, planters association sources alleged.

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