Kochi :

With the Spices Board issuing cardamom e-auctioneer licence to four more players last week, competition in the cardamom auction market has been heated up with a sudden spurt in prices.

Vandanmedu Green Gold Cardamom Producer Co Ltd (VGGCP), Sugandhagiri Spices Promoters and Traders Pvt Ltd, Cardamom Growers Federation – Bodinayakanur, and Idukki District Traditional Cardamom Producer Company Ltd are the new licence holders. Currently, there are 12 licensed auctioneers including the new entrants.

The new licences will be valid till 2017.

The average price of cardamom was in the range Rs 700 – Rs 885 per kg between December 1, 2014 and January 13, 2015. However, with new players came in, the average price shot up to Rs 965 per kg on Monday and then to Rs 980 per kg on Wednesday. “We expect more competition among traders to deliver better prices ,” said A Jayathilak, chairman of the Spices Board.

Ensuring minimum supply of cardamom is critical for the existence of auction houses as they need a minimum annual turnover of Rs 75 crore to Rs 100 crore to survive.  Sunday, which had been traditionally a working day for auctioneers and traders, will be a holiday.

K K Saseendrababu, MD of VGGCP, said that the effect of new entrants, including his own company, is not limited to better price realisation. “Perhaps, the biggest change is in the attitude of auction houses towards the farmers in the region. Now the auctioneers have started going to the farm gates to collect the crop rising competition, heating up the competition,” he said.

source: http://www.timesofindia.indiatimes.com / The Times of India / Home> City> Kochi / by Shenoy Karun, TNN / January 24th, 2015