Minister to launch electronic auction of cardamom

New Delhi, Aug 20 (UNI) Minister of State for Commerce Jairam Ramesh will launch electronic auction of cardomom on August 23 to ensure transparency in trading and promote healthy competition in purchase.

The e-auction, an initiative of Spices Board controlled by the Commerce Ministry, will begin at Bodinayakanur in Tamil Nadu, which accounts for 80 per cent of traders and 21 per cent trading of the premium spice through auction.

Developed in assocition with Tata Consultancy Services, the new system will provide smooth and hassle-free transaction of the commodity by facilitating speedy billing and eliminating chances of hidden costs. The system will also discourage speculation as identity of bidder is not revealed during the process of auction.

Moisture content and bulk density of every lot offered for sale will be screen-displayed to help bidders to assess quality of cardomom.

The Spices Board, in the meantime, is also planning to establish common cleaning, grading and packing facilities in association with auctioneers to enable traders and bidders to sell the commodity to buyers without undertaking further cleaning and grading to save time and costs.

Cardamom is a major crop in of Kerala (75 per cent), Karnataka (15 per cent ) and Tamil Nadu (10 pc).

The volume of business in auction centres in 2006-07 was 7,939 tonnes. Kerala accounts for the maximum quantity of cardamom auctioned, followed by Tamil Nadu, Karnataka and Maharashtra.

Of 11,535 tonnes of small cardamom produced in the last financial year, 7,939 tonnes (69 per cent ) was auctioned. Of 40,500 farmers engaged in its production, nearly 27,000 ( 67 per cent) sell their produce through the auction system.

If e-auction succeeds at Bodinayakanur, the system will also be introduced in four other major centres at Vandanmedu, Kumili, Thekkady and Pulianmala in Idukki district of Kerala, the statement added.

UNI