The high burden of levies including sales, surcharges and purchase taxes that had earlier accounted for 12.05 per cent had been a stumbling block for setting up an auction centre for this commodity in neighbouring Siliguri, the gateway to the north east.

According to sources in the Spices Board, Gangtok, which is an export promotional body under ministry of commerce and also the regulatory authorities for large cardamom, the board had initiated to introduce auction through the Siliguri regulated market, which is likely to open up a new era for large cardamom, grown in Sikkim and neighbouring Darjeeling.

Earlier, representations requesting reduction of existing taxes from various quarters relating to large cardamom cultivation and trades, including private and government sectors, over the years had fallen on deaf ears of the West Bengal finance and commercial departments, sources said.

The West Bengal finance department in its notification on November 1, has reduced sales tax to 3 per cent from the 12.05 per cent, which is at par with tax levied in Sikkim.

According to a recent estimation made by the Spices Board, West Bengal produced about 600 tonnes of large cardamom , also known as brown cardamom in its hilly regions of Darjeeling, but the the trade having no transparency and absence of any mechanism to track the production, the West Bengal agriculture department's record books continue to harp on old figures of 210 tonnes per annum.

Sikkim is the largest producer of large cardamom and its annual yield is around 4,000 to 4,500 tonnes.

The regional Spices Board at Gangtok along with the autonomous trade body, the Siliguri regulated market committee, headed by an IAS officer of the West Bengal government had initiated a move to establish an auction centre for large cardamom at Siliguri, where growers, traders and exporters could meet and transact business, eliminating the middlemen.

The West Bengal finance department's decision to reduce sales tax for purchase of large cardamom from the auction centre at Siliguri will not only help the trade of products of West Bengal, board officials here feel that commodities from Sikkim and sub-Himalayan region, whose combined yearly output is more than 4,500 tonnes could be transacted through the auction centre earning the country a substantial amount of much needed foreign exchange.

Board official here feels that once the activities at Siliguri auction gains momentum, the entire production of this sub-Himalayan region would be rushed through this centre, resulting in better prices to the growers.

This will also enable the West Bengal government earn more revenue even if the rate of taxes have been reduced. The sources however, added that the normal rate of West Bengal sales tax of 12.05 per cent will continue to be levied for all transaction of large cardamom taking place outside the Siliguri auction centre.