Change in the commercial tax structure announced by the Tamil Nadu government over the week ended April 15 has seen Tamil Nadu buyers not attending auctions in Kerala the following week.

Sources at the auction centres told The Financial Express here that prices have fallen with little enquiries from the buyers.

The new commercial tax rule implies that buyers have to pay tax at the first point of buying while earlier the buyers had to pay only at the time of the selling their holdings.

Sources said that since the auction centres are not authorised collection points for making the commercial tax payments, there is confusion as to who would accept these tax payments.

As a result of this confusion, auctions during the week ended on April 29 has been disrupted and on Tuesday and Wednesday no auctions were held.Besides, with the cardamom season coming to an end, there is little or no flow of cardamom to the auction centres. This situation has compounded the problem for the exporters who had been active in the market towards the end of March and early this month.

Exporters have refrained from attending these auctions with the supply situation remaining volatile still, sources said.

The drought-like situation in the upcountry states has resulted in very little movement of cardamom from Delhi, Lucknow and other big trading centres. According to traders, cardamom sale at these centres has dipped considerably over the last three weeks. With the drought situation getting worse, the sales are likely to fall further.

Added to this is the slackening of the pan industry which consumes large quantities of small-sized cardamom. According to auction centre sources, the sale of pan-type cardamom has seen a slowing down of its movement.

Up to the 22nd of this month a total of 6,000 tonnes of cardamom has been sold through the auction centres in Kerala and Tamil Nadu. But the prices during the last week has dipped to an average of Rs 650 per kg from the previous week's level of Rs 764 per kg.

On April 17, auctions conducted by the Cardamom Producers' Association at Bodinaikanur saw a total sale of 23 tonnes at an average price of Rs 691.52 per kg. The highest price was Rs 806 per kg for the best quality cardamom.

But two days earlier, price had ruled higher at Rs 725 per kg. On 23rd when auctions were held last, cardamom sold at an average price of Rs 685 per kg with the best quality cardamom fetching Rs 856 per kg. Monday, Tuesday and Wednesday auctions had been put off because of poor arrivals and the confusion over payment of the commercial tax at the first point.y