Agri Business

Spices Board to restart two auctions for cardamom from Oct 1

V Sajeev Kumar Kochi | Updated on September 30, 2020 Published on September 30, 2020

The Spices Board is to restart daily two auctions for cardamom from October 1 at the Spices Park in Bodinayakanur in Tamil Nadu and Puttady in Idukki on alternate days.

The commencement of cardamom crop season, large quantity arrivals to the auction centres, and farmers hurrying to sell their produce at the earliest facilitated the board to restart daily two auctions.

The daily two auctions in both these centres were suspended from the middle of March, April and May following the spread of coronavirus to avoid unnecessary crowding at auction centres.

Later, single auction started on May 25 following strict Covid protocol of social distancing norms by limiting the time and the number of terminals for bidding. According to officials, the trade has been going on in full swing, and farmers have utilised the facility to sell out their carryover stock.

However, the start of the harvest season since the middle of August, forced the board to restart two auctions. But the limited number of terminals and one auction per day adversely affected both auctioneers and farmers to sell the entire produce collected for auction within the limited time. Moreover, the restriction in the bidding terminal, is also preventing a greater number of bidders to the auction centre, which also leads to non-competitiveness in the bidding, thereby affecting the price of cardamom.

Also read Covid uncertainty hits cardamom auctions

The Idukki District Administration has permitted to enhance the number of terminals and providing sufficient time for selling the entire quantity pooled by the farmers. This would enable to conduct auctions for 100 tonnes in a day, the officials added.

A leading auctioneer in Puttady told BusinessLine that farmers and traders are hoping to cash in on the cardamom demand from the ensuing festival season in North Indian consuming centres. The harvest is at the peak and the enquiries from the upcountry markets are expected to boost the already subdued demand in the wake of the pandemic. The average price realisation is in the auctions is hovering in the range of ₹15,50 to ₹1,600 per kg.

Despite the sales on account of domestic demand, another auctioneer said that buyers in the entire supply chain are skeptical because of the restrictions in the consuming markets for marriages and functions, where cardamom is used for food and confectionery. However, farmers’ move to bring in more volumes to liquidate is expected to benefit the prices and improve the turnover at the auction centres.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on September 30, 2020
This article is closed for comments.
Please Email the Editor