Kanpur will be the third non-traditional centre where auctions would be conducted in the country, the sources said.

Spices Board had started conducting cardamom auctions in Mumbai and Delhi in the last season (August 1997-July 1998).

The sources said auctions were started in these centres as part of board's strategy to counter smuggling in of cardamom from the tiny central American country, Guatemala.

Spices Board chairman, V Jayashankar, who was recently here, said that the board had given the go-ahead for conducting cardamom auctions to an agency.

Auctions at Mumbai last season fetched the highest price for the commodity, while towards the end of the season, Delhi auctions realised prices better than other centres.

Jayashankar said auctions in Mumbai fetched a10.5 per cent higher price for comparable quality cardamom against the rates realised at auctions in Bodinayakanur near Madurai in Tamil Nadu.

Even in Delhi, prices were 3.5 per cent higher than the rates fetched in Bodinayakanur, he said.

Cardamom auctions are being conducted in non-traditional centres since the Spices Board sees enormous potential to sell the commodity in these places.

Normally, smuggled cardamom is being sold in these centres, where cardamom consumption is higher than the growing centres in the south.

Delhi is the highest cardamom consuming centre in the country and is also being viewed as gateway to other states.

This was the reason for Spices Board to opt for auctions in the capital.

Kanpur is also seen as a centre with tremendous potential. Spices Board sources said it was one of the places were smuggled cardamom was available in plenty.

Another reason for holding auctions in these centres is that consumers could be assured of quality cardamom at reasonable prices.

Inturn, growers could also be assured of remunerative prices, the sources said.

Meanwhile, India's cardamom production is likely to decline to 6,900-7,000 tonnes for the current season.

This is against an estimated 7,650 tonnes produced last year.

The effects of a low production are already being felt with prices hovering at higher levels at the auctions.