The Spices Board has introduced electronic auction in cardamom trading with a view to promoting transparency in transactions and discouraging formation of cartels in the sector.

The e-auction system would be launched by Minister of State for Commerce Jairam Ramesh on August 23 in Tamil Nadu’s Bodinayakanur, which is a major assembling centre for cardamom and accounts for 80 per cent of traders of this commodity and 21 per cent of the total cardamom auctioned.

Developed in collaboration with Tata Consultancy Services, Bangalore, the system is aimed at providing transparency in transactions, promoting competition for purchases and revamping existing manual procedures.

The Board would be introducing e-auctions in four other auction centers of Vandanmedu, Kumili, Thekkady and Pulianmala in Idukki district of Kerala in due course based on the performance of Bodinayakanur, an official release said on Monday.

The Board is planning to establish common cleaning, grading and packing facilities in association with auctioneers to help traders sell the material bought in the auction to buyers without further cleaning and grading.

Volume of business in auction centers in 2006-07 was 7,939 tonnes and the average price realized was Rs 313.02 per kg. In 2006-07, total production of Cardamom (small) was 11,535 MT of which 7939 MT was auctioned. Of the estimated 40,500 farmers involved in cardamom production, nearly 27,000 sell their produce through the auction system.

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Posted: 08|21|07 at 9:41 am. Filed under: Auction News.