MTECHTIPS

MTECHTIPS:-India Cardamom: Volatile sessions expected as farmers demand decontrol

India cardamom is expected to trade volatile sessions in the coming days as prospects of farmer unrest looms demanding a complete decontrol of commodity.As per the government rules, the Spices Board has been given exclusive mandate for cardamom and only licensed traders could carry out trade in the commodity. Prior to the time it got stalled, cardamom trade had been carried out through auctions controlled by the Spices Board which also set the benchmark price in spot markets.The Board has provided license to 8 auctioneers. Six of them will conduct auctions in six days. The rest of two, who have notified least quantity of cardamom would jointly conduct auction in a single day; thus the eight players clock 7 days a week of cardamom auction process.The said auctioneers are supposed to have pooling centres across the district of Idukki. Two days prior to the auction, farmers begin to take cardamom to auctioneer-operated pooling centers. The cardamom thus pooled are amassed in bags and assigned lot numbers. The corresponding lot number is given away to farmers for later identification.A sample of 1 kilogram from lots is taken to the auction centre at Bodinayakanur and Puttady where the samples are examined and prices are arrived at. From that point on the auction begins. The farmers are entitled to their share of respective auction money in ten days starting the date of auction. The one who bids and wins the auction should pay the auction money to the auctioneer in a matter of seven days.