Uncertainty in cardamom auction in Idukki due to ban on re-pooling

01-Jul-2024 01:11 PM

Idukki. After the Spices Board banned re-pooling in small cardamom, traders (buyers or vendors) have approached the Kerala High Court, which has created uncertainty over its auction process.

The producers have justified the decision of the Spices Board and said that dealers often try to 'manipulate' the auction process by re-pooling their purchased cardamom. The producers have suggested that a separate auction should be held for re-pooled cardamom.

At present, this matter is pending with the Kerala High Court and its decision is awaited. It is worth mentioning that in early June 2024, the Marketing Director of the Spices Board had issued a circular limiting the pooling quantity of cardamom for licensed dealers to 25 percent of the total quantity in any auction.

This means that if 100 tonnes of cardamom is offered for sale in an auction, dealers can purchase a maximum of 25 tonnes of it for pooling purpose.

This rule has come into force on all licensed auction companies. Earlier, dealers were allowed to purchase up to 25 tonnes of cardamom in any auction for pooling purpose.

Usually the auction process is conducted twice a day. Officials said that this re-pooling control has been implemented based on the court's direction.

The secretary of the Kerala Cardamom Dealers Chamber has expressed deep concern over the impact of this new control and claimed that it will have a serious adverse effect on the vendors and the auction process.

The court has been approached to know the clarity on the commodity quantity allowed for re-pooling for licensed dealers.