Heeding to the request of cardamom growers in Idukki, the Spices Board has come out with restrictions on re-pooling of the commodity at auction platform.

The Spices Board Director (Marketing) issued a circular that said to reduce re-pooling, the cardamom pooled by licensed dealers in any auction shall not exceed 25 per cent of the total quantity put to auction. The board directed licensed auction companies to enforce this rule. The current pooling quantity for dealers per auction was 25 tonnes, with two auctions a day.

In another circular, the board noted that many a time the same dealer pooled the cardamom and then purchased the same lot back. This unethical practice by some dealers manipulates the system and adversely affects the interests of growers. The auctioneers are required to ensure that no dealer is allowed to purchase the same lot they pooled in any auction.

Farmers cry foul

The farming community alleged that the dealers are buying cardamom on credit from the auctions and then they re-pool the same in another auction, to get profit. This is an ongoing process.

Vandanmedu Cardamom Growers Association said the circular of the Spices Board direction would help prevent cardamom re-pooling by some groups under the banner of auction centres. The new restrictions will prevent the arrival of huge quantity of cardamom to the auction by vendor groups.

The Association had approached the Kerala High Court seeking to stop the re-pooling. Another trader group, The Kerala Cardamom Dealers Chamber also filed petition before the High Court demanding traders to be allowed 100 per cent re-pooling at the auction. The court had directed the Spices Board to study the issue and find a solution. Based on the court’s direction, hearing was conducted with both groups, and restrictions were imposed.

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