The Spices Board has directed cardamom dealers not to buy cardamom from unauthorised traders.
The board warned of strict action against those conducting cardamom auctions without the licence of the board.
As per a circular issued by the Spices Board’s Director (Marketing), adhering to the Cardamom Licencing and Marketing Rules 1987 and its subsequent amendments is crucial. These rules clearly state that licensed dealers should purchase cardamom only from registered estate owners/growers or licensed auctioneers.
The board stated that a public notice was issued on December 15, 2023 by the board which stated that any firms or entities conducting cardamom auction in any form without obtaining a licence from the Spices Board shall be dealt with as per the provisions of the Cardamom Licencing and Marketing Rules.
“The board also directs that the purchase of cardamom by licensed dealers from any firm conducting auction without obtaining an auctioneer licence from the Spices Board or conducting auction — e-auctions or manual auctions — without the approval of the board shall be treated as a violation of the cardamom licensing and marketing rules and the conditions for the issue or renewal of dealer licence, and action will be taken accordingly,” said the circular.
To ensure transparency
According to Spices Board sources, the new circular has been issued to uphold the transparency of the cardamom purchase process. The board, through its approved auction companies and dealers, has the authority to intervene on any issue. However, if a company conducts an auction without a licence, the board’s intervention is limited, potentially leading to financial issues in the sale and purchase of cardamom.
However, online cardamom auction company sources said that they were conducting only trade business on B2B (Business to Business) basis and not buying cardamom from dealers or growers. “The online companies are buying cardamom as per GST rules and regulations and reselling to another trader. They are not conducting any primary business, and the Spices Board has no right to interfere with this business,” said the source.
