Electronic auction in cardamom has helped reduce volatility and increased realisation. According to Spices Board chairman VJ Kurian, ?Notwithstanding the crop shortage, the e-auction at Bodinayakanur has helped farmers in getting better returns for the crop.?
According to the figures made available by the board, average auction price during August -November 2007 stood at Rs 421 per kg as against Rs 297 per kg during the April-November 2006. Incidentally, the price touched the Rs 550-mark on December 8 and is expected to reach Rs 600 soon. The bullish run is the coupled effect of the shortage and the transparent system, he said. ?The transparent auction system has helped a lot in curbing volatility and farmers are benefiting from it,? Kurian added.
However, traders speaking to FE from Bodinayakanur expressed their displeasure over the new system. ?Prices have gone up because of the shortage and the new system has got do nothing with it,? a trader and a prominent official of the Cardamom Planters Association said.
?Speculators can remain anonymous in e-auction whereas they can be spotted easily in manual bidding. Such traders can be avoided by sellers,? he said. Traders are also suspicious about the claims of transparency and economy. ?The efficiency of the new system can be only assessed in a season where the crop is good,? he added.
Board officials said that manual auctions would cease to exist with the inauguration of the second e-auction centre at Vandanmendu and traders would have to come to the new centre for actions.