Spices Board has come to the aid of cardamom growers to arrest the dip in prices. To safeguard the growers’ interest , the Board has taken some interim measures by incorporating certain changes in e-auction system.
The maximum quantity permitted for pooling of cardamom for an e-auction by a licensed auctioneer is now limited to 65 tonnes for an initial period of four weeks.
The pooling of cardamom by licensed dealers is limited to 30 per cent of the total pooling scheduled auction during this period.
The desirability of continuing with these changes would be evaluated after four weeks and further modification required, if any, for the industry’s betterment will be decided by the Board after discussions with all the stakeholders. All the licensed auctioneers are directed to comply with the conditions for conducting the e-auction.
It may be recalled that the Board had convened a meeting with the farming community after they sought the intervention of the authorities to put a cap on cardamom arrivals in the auctions due to price drop.
“Let’s wait and see” is the comment from C. Sadasivasubramaniam, secretary, Kerala Cardamom Growers Union when asked on the interim measures taken to arrest the price drop. Sadasivasubramaniam, who relentlessly opposed against re-pooling of cardamom in auctions, says that “such a move from the Board should have been initiated during the season in Aug-Sep-Oct itself when the prices and demand was on the higher side”.
Growers, he said, have repeatedly sought Board’s intervention to put a cap on auctions offered quantities as majority are re-pooled stock impacting the industry badly. Today, prices have dropped drastically between ₹800-850, while the production cost is hovering at ₹1,000. Many small scale growers are finding it difficulties to upkeep their plantations due to dropping prices, he added.
Raising a concern over the Board’s move, an industry source said that such an artificial restriction would give a negative message to the market regarding overall production or stock accumulation. It would be ideal for the market forces to get settled and streamlined based on the demand-supply situation.