• Agriculture,
  • Business

    • e-auctioning of Cardamom: Spices Board Can Invoke Bank Guarantee of Auctioneers for Non-Payment to Growers

    By on November 24, 2017

    IDUKKI:
    In a bid to provide a fair deal to cardamom-growers, the Spices Board has decided to invoke the bank guarantee of auctioneers if there is a default in payment to farmers for the e-auctioning of cardamom.
    The Cardamom (Licensing and Marketing) Amendment Rules 2014 stipulates that the auctioneer shall pay the growers, whose cardamom is pooled, the applicable sale value of the spice sold in an auction within ten days from the date of the auction.
    If the auctioneer fails to make the payment as per the terms and conditions of the license, the Board shall invoke the bank guarantee of the auctioneer forthwith for arranging settlement of amount due to the cardamom-growers.
    “The farmers are free to contact the Spices Board office and submit an application with proof of sale in case of non-payment by auctioneers. The non-payment of dues to growers within the period so specified shall be a violation of the conditions of license,” said Dr A Jayathilak, Chairman, Spices Board.
    For obtaining e-auction license, the applicant has to make a security deposit in the form of a bank guarantee, equivalent to the average auction sale value of cardamom in one auction during the past three years. As per the Rules, if payment default is made, the Spices Board can take steps for suspension and/or cancellation of the license.
    The Board has revolutionized the auction system for small cardamom by introducing electronic auction for the benefit of growers. It has established e-auction centers at Bodinaykanur in Tamil Nadu and Puttady in Kerala for ensuring increased transparency in transactions and help the farmers in realizing better prices.

    Iscea

    more recommended stories