The Hindu Business Line : Tea Board may launch e-auctions by April

THE Tea Board is contemplating starting electronic auctions at the Guwahati and Coimbatore tea auction centres by April and hopes to complete the process throughout the country by the end of October, this year.

According to Mr R.S. Shukla, Deputy Chairman of Tea Board, electronic auctions at the Kolkata tea auction centre will start after Guwahati and Coimbatore. The organisers of the Kolkata tea auction centre have started procuring the necessary hardware for the new system.

"We are facing some problem with the software but we are confident that it will be sorted out soon," Mr Shukla told newspersons after addressing the members of the Calcutta Tea Traders Association (CTTA) at their 113th annual general meeting.

He said that electronic auctions would start with one set of teas (either CTC or orthodox) first and once the new system stabilizes the other product will be introduced.

Meanwhile, the Tea Board has issued a licence for a new auction centre at Jalpaiguri.

It may be noted that the one-man committee of West Bengal Government in its report also suggested setting up of a new auction centre in that region.

"The licence was issued by the Tea Board only a couple of months back. The district magistrate of Jalpaiguri is the Chairman of the body that will oversee the new auction centre", he said.

Tea Board, however, has not fixed a deadline for completing the electronisation of the auction centers but, ideally, it would like the process to be over within six months from the beginning.

Mr Shukla said production of tea in 2003 had increased by 31 million kg (mkg) to 857 mkg against 826 mkg in 2002. Last year, auctions through the Kolkata centre were 133 mkg. It is the highest quantity since 1991.

Mr K.N. Desai, the outgoing Chairman of CTTA, in his inaugural speech urged the Tea Board to make certain changes in the Tea Marketing Control Order 2003.

"The buyers are primarily concerned about the five per cent premium payable on division of lots and the limit on proxy bidding. The Chairman of Tea Board has decided not to reduce the prompt period in the North India centres to the sixth working day from January 2004," he said.

He thanked the Tea Board to delay the introduction of cash and carry system in North India auction centres from January, this year. The broker members of CTTA can continue to grant credit to their buyers up to the prompt date.

CTTA have also requested the board to reduce the minimum qualifying percentage for samples of CTC leaf and dust tea. "This will help several buyers to retain their free trade sample entitlements without which their ability to operate in the auction will be severely curtailed," Mr Desai said.

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