The Spices Board of India has issued a firm advisory urging stakeholders, traders, and the public to abstain from participating in unauthorized cardamom auctions, highlighting that such activities constitute a violation of the Cardamom (Licensing & Marketing) Rules, 1987. The Board warned that engagement in unlicensed auctions will attract stringent legal action under the existing regulatory framework, emphasizing its commitment to safeguarding the integrity of India’s cardamom trade.
In recent months, the Board has observed certain firms and entities—including, in some instances, licensed dealers—conducting cardamom sales without the requisite authorization. Under the CLM Rules, only individuals or organizations with a valid license issued by the Spices Board are legally permitted to operate as auctioneers or dealers. Even licensed auctioneers are restricted to conducting sales strictly at locations, dates, and times approved by the Board. Violations not only contravene these rules but also distort market dynamics, undermining the transparency and fairness of price discovery mechanisms.
The Spices Board noted that unauthorized auctions directly affect licensed auctioneers and producers by eroding their revenue and compromising the integrity of trade practices. Licensed dealers are mandated to purchase cardamom solely from registered estate owners, licensed growers, or officially sanctioned auctioneers. Deviations from this framework risk inflating prices artificially, reducing competition, and diminishing trust among domestic and international buyers, many of whom depend on India as a reliable source of premium quality cardamom.Currently, cardamom auctions are officially conducted through e-auction centres in Puttady (Kerala) and Bodinayakanur (Tamil Nadu), alongside approved manual auction centres in select other states.
The Board has urged all market participants to verify auctioneer credentials via its official website and participate only in legitimate auctions. By ensuring adherence to regulatory protocols, the Board aims to protect producers’ interests, maintain transparent market operations, and enhance India’s reputation in the global spice trade.The advisory also underscores the broader economic and strategic implications of regulatory compliance. Cardamom, being one of India’s high-value spices, contributes significantly to export earnings and farmer livelihoods, particularly in Kerala and Tamil Nadu.
Unauthorized trading threatens both domestic price stability and international buyer confidence, highlighting the importance of coordinated enforcement to preserve India’s competitive edge in the global spice market. Through this directive, the Spices Board reiterates its zero-tolerance stance on illegal trading, signaling a proactive approach to market governance and demonstrating its resolve to support licensed dealers, promote fair pricing, and secure long-term sustainability for India’s cardamom industry.
