The Hindu Business Line : Cardamom growers seek floor price

Growers' plea
The Spices Board should set up a marketing wing and intervene whenever the prices fall.
Smuggling of cardamom from overseas needed to be stopped

Kochi , Dec. 31

Even as the cardamom prices are ruling steady with marginal improvement during the week at auctions held in Kerala and Tamil Nadu, the Kerala Cardamom Growers Union has urged the Centre to fix a minimum floor price proportionate to the cost of production.

The Union President, Mr T. Ashokkumar, in a representation to the Union Commerce Secretary has also demanded that so as to ensure a remunerative price for the growers the Spices Board should set up a marketing wing and intervene when ever the prices fall. Besides, he said, spice parks and retail outlets should be set up throughout the country for marketing the spices.

To implement this "novel scheme" substantial funds should be allocated in the ensuing Budget, he said.

According to him, the spice parks will not only help cardamom but will be a good sales point for all the spices produced in the country.

He alleged that the smuggling of cardamom from overseas led to the collapse of the Indian market for more than two decades and hence it needed to be stopped. "The smugglers were bringing in cardamom through Kolkata Port, but now they have found new channels such as Pakistan and Bangladesh also."

Imported cardamom is under invoiced. Irrespective of grades, price on the imported cardamom should be fixed at $6 a kg and a duty of 70 per cent levied strictly, he said.

According to Mr Ashokkumar, the Centre has given 360 days to the importers of cardamom to re-export the value added products, which they are misusing and flooding the Indian markets with imported product. Therefore, the time limit to re-export may be reduced to 40 days only, he said.

He also suggested that steps be taken to sell cardamom in all the CSD canteens, railways, domestic and international airports apart from promoting sale of cardamom-flavoured tea in all major tourist centres.

Besides, he said that usage of cardamom should be recommended for anti-smoking campaign through the Union Health Ministry. Also research findings on cardamom in health care should be propagated. Other demands included introduction of electronic cardamom auction system to replace the existing "outcry system".

As during the past four years the cardamom planters have suffered huge losses financially and are heavily indebted, the Commerce Ministry should request the Finance Minister to arrange for a loan moratorium, he said.

Meanwhile, the Spices Board is understood to have appointed TCS to conduct a feasibility study on introducing e-auction and a meeting with the auctioneers, traders and planters is scheduled for January 1 in Bodinayakkanur.

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