The Hindu Business Line : Traders not keen on e-auction in cardamom

Kochi June 8 The proposed e-auction in cardamom, which the Spices Board is likely to launch in Bodinayakannur in Tamil Nadu on July 16, does not seem to have enthused the auctioneers and traders but most of the planters are happy with it.

For the majority of the auctioneers, "it is impractical." The reasons they cited are that traders are basically not very literate and hence, would find it difficult to adjust to the new system.

Stoppage of bids

The sellers would not know who is bidding; and automatic closing results in stoppage of further bids at higher price.

Therefore, more studies are needed for traders, sellers and the auctioneers, they said.

Describing the e-auction system as a good one, Mr S.V. Subramanyam, President of the Cardamom Dealers Association, Bodinayakannur told Business Line that the dealer should have been given enough opportunities through demonstrations to understand the system.

"The dealers have no practical knowledge at all," he added.

Other problems

Besides, he said, there are other problems.

Without displaying the commodity, bidding is difficult, as the capsules are of different grades and colour.

Added to this is the time consumed in e-auction, which would be much more than in the current open outcry system.

Mr Dharmendra N. Shah, a trader, said he had to see and get acquainted with the system before opting for it.

While expressing apprehensions like his colleagues in the trade over the time consumed in the bidding on each lots, he said: "It is a closed auction till the end and the near competitor remains unknown."

Beneficial in the long run

Mr Rajendra Parekh, an auctioneer and trader, is of the opinion that it would be beneficial for all stakeholders in the long run.

According to him, adequate infrastructure for the e-auction should be created at the Spices Board premises in Bodinayakannur, using funds from the Cardamom Development Fund, which has a corpus of about Rs 8 crore.

A centralised e-auction establishment would be beneficial to all participants, he said.

A few mock e-auctions need to be conducted involving all parties concerned before formally launching the auction, he added.

Meanwhile, Mr T. Ashokkumar, President of the Kerala Cardamom Growers Union, said: "Nobody knows what it is."

But the planters will get to know about it after attending a few auctions, he said.

"We welcome it because we believe that it would bring in price discovery and more transparency."

However, awareness about the system has to be created among the planters, he said.

He also said the auctioning companies might have to invest Rs 25-30 lakh for setting up the e-auction system, which could be behind the lack of interest.

New auction companies, which are ready to start e-auction, should be given licence by the Spices Board, he added.

Official sources said that demonstrations have been held where planters, traders and auctioneers participated and expressed their views, which were taken into account while designing the system.

Launch

Planters were demanding the introduction of e-auction, as they believe that it is beneficial to them, they added.

The Union Minister of State for Commerce, Mr Jairam Ramesh, during his recent visit, said that the e-auction would be launched on July 16 at Bodinayakannur.

TCS has developed the system and would be setting it up in the Cardamom Planters Association there for the e-auction.

More Stories on : Spices & Condiments | E-Commerce & E-Business

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Monsoon reaches N-E, picking strength

Inflation rate dips as primary items turn cheaper

Fertiliser stocks being positioned for kharif needs

`Fix floor price for imported arecanut'

Bears put spot rubber under pressure

Mixed trend at Kochi tea auction

Packing value

Uncertainty pulls down pepper futures

Traders not keen on e-auction in cardamom