E-auction will usher in transparency

The soon-to-be inaugurated e-auction system for cardamom trading on August 23 will provide more transparency, according to the Spices Board of India.

The system has been developed with the support of information technology major Tata Consultancy Services (TCS) to promote healthy competition for purchases and make transactions smooth and hassle-free. Proper and error-free documentation in e-auctions would ensure speedy billing/voicing, eliminating the chances for hidden costs.

As the bidder's identity is not revealed during the auction, the chances of speculation is also discouraged. The moisture and bulk density of every lot offered for sale will be displayed on the main screen at the auction center, which will help the bidders to assess the quality.

The Board is planning to establish common cleaning/grading/packing facilities in association with auctioneers which will help the traders/bidders to sell the material bought in the auction to the buyers without further cleaning/grading thereby save time and costs.

According to a press release, the new system is designed to replace the traditional manual auction system of shouting out bids.

Cardamom is a main stay crop for many thousands of farmers in the three southern states of Kerala (75 per cent), Karnataka (15 per cent) and Tamil Nadu (10 per cent) spread over the Western Ghats. The volume of business in the auction centers in 2006-07 was 7,939 tonnes. The average price realised at the auction centers is Rs 313.02 a kilo in 2006-07.

Kerala accounts for the maximum quantity of cardamom auctioned followed by Tamil Nadu, Karnataka and Maharashtra. In 2006-07, the total production of cardamom (small) was 11,535 million tonnes, of which 7939 million tonnes (69 per cent) was auctioned. Out of the estimated 40,500 farmers involved, nearly 27,000 (67 per cent) sell their produce through auction. In this period, 650 million tonnes (6 per cent) was exported.

Cardamom is mainly sold through auctions in different centers licensed by the Spices Board. Currently cardamom auctions are held in Kumily, Vandanmedu, Nedumkandam, Pulianmala and Kozhikode in Kerala and in Bodinayakanur in Tamil Nadu.

In Karnataka, auctions are held in Saklespur, Sirsi and Mercara. In North India, auctions are being held in Mumbai and Kolkata. Bodinayakanur accounts for 80 per cent of the traders in this commodity and 21 per cent of the total cardamom auctioned. Hence the new system will be launched there on Thursday.

The Board will be introducing e-auctions in the other four major auction centers of Vandanmedu, Kumili, Thekkady and Pulianmala in Idukki district of Kerala in due course based on the performance of Bodinayakanur, the release added.