COMMODITY MARKETS AND COMPUTERS: An analysis of e- auction in cardamom marketing from an inclusive innovation system perspective

Abstract

Given the key role of plantation sector in fostering inclusive development, this paper has been an attempt at locating the spaces on exclusion in the marketing of cardamom and the bearing of e-auctions in addressing them. With a view to locating the spaces of exclusion the study made use the taxonomy of social exclusion by Amartya Sen like passive and active exclusion vis-a-vis the instrumental and constitutional exclusion and added new categories exclusion like subordinated or unequal inclusion, illusive inclusion and sustained exclusion. It was observed that in the conventional auction system, active exclusion has been prevalent on account of the practice of taking a fixed quantity as sample from all the lots regardless of its size and delay in payment along with the absence of title deeds for large number of growers. The exclusion of those without title deeds from the auction centre also could be considered as a case of instrumental exclusion as articulated by Sen. Moreover, the practice of proving an advance appears to have the effect of illusive inclusion. These dimensions of exclusion have been sustained over the years. In addition, the study also found the existence of wide variation in the price realised by different size class of holders (larger growers getting significantly higher price) which we have articulated as a case of subordinated/ unequal inclusion. An analysis of the price variation and factors influencing price formation under e-auction revealed that e-auction has been successful in addressing the subordinated/unequal exclusion. But the study has shown that the introduction of e-auction and harnessing of ICT could hardly address the active, passive and instrumental exclusion that has been sustained over the years. This tends to suggest that the issue of social exclusion cannot be addressed simply by technological innovation in the absences of appropriate institutional innovations.