Sikkim, the only other state that grows large cardamom, used to attract grower- sellers from West Bengal as it had a sales tax rate of three per cent against 12 per cent here.

Following persistent demands from the growers in West Bengal's hill areas, traders, the Siliguri Regulated Markets Committee and the regional office of the Spices Board, finance minister Asim Dasgupta agreed to reduce the sales tax on October 11.

Subsequently, the state's finance department issued a notification, no 3314-FT, to effect the change.

Now the proposed auction centre faces a few minor procedural hitches. For one, the Spices Board's recommendation for spot payments to growers has been turned down by the chairman of the Siliguri Regulated Markets Committee.

According to a source in the regional office of theSpices Board, the draft procedures recommended that farmers be paid on the day of the sale as most of them are small growers and cannot offer the 15 days' credit as laid down by the Licensing & Marketing Rule of 1986.

The chairman of the Siliguri RMC, who is also the sub-divisional officer in charge of Siliguri, feels that rules already in effect at auction centres for other commodities should not be disturbed.

Another procedural issue has been raised by the state's agri-marketing department, which wants each bidder to pay a security deposit of Rs 5000. This will provide a cushion to the centre if a buyer does not pay up after the grower has taken his money from the auction centre and gone home.

Barring any problems over these issues, the auctions are scheduled to start in the last week of December. A meeting to sort out the disputes has been called on December 3.

Spices Board officials feel the meeting will be able to resolve all unsettled issues. In fact, they are apprehensive that the financeminister may raise the tax again in next year's budget if the auctions fail to get going.

This year, total Indian production of large cardamom has fallen by over 70 per cent to around 4,700 tonnes. Sikkim alone produces around 4,000 tonnes, while rest is grown in Darjeeling and the adjoining Terai region.

The shortfall has sent large cardamom prices spiralling upwards to Rs 200 per kg from Rs 80 per kg in the corresponding period of last year.