The Hindu Business Line : Upasi plea to do away with division of lots in e-auction

THE United Planters' Association of Southern India (Upasi) has appealed to the Union Minister for Commerce and Industry, Mr Kamal Nath to do away with `division of lots' when the South Indian auction centres go 100 per cent electronic.

The three South Indian auction centres at Kochi, Coonoor and Coimbatore are expected to go fully electronic by end-March.

The Upasi President, Mr Anil Kumar Bhandari, has in a communication to Mr Kamal Nath expressed surprise about the issue of `divisibility of lots' being kept in abeyance, which the association perceives could allegedly be under pressure from interest groups.

The Tea Board had, on the basis of recommendations made by the A.F. Ferguson and Company on `Primary Marketing of Tea', initiated certain reforms in the tea auction system. The first phase of the recommendations was implemented in January 2003, whereby a premium of 5 per cent was imposed on the divided quantity. In the second phase, division was to be completely done away with (from January 2004).

``We are dismayed that the division of lots is being allowed even in the electronic auctions. Although, the original programme for the auction-trading platform did not have the facility for division, we understand that this feature is being fitted in,'' Mr Bhandari has stated.

Alleging that this backdoor manipulation was a clear retreat from the commitments made to the industry, he said that the irony was even more blatant considering the amount spent by the Tea Board to introduce the system.

The study also noted that the South Indian auctions had the most liberal divisibility norms compared to other world centres. The division, UPASI said, hampered the competition at auctions and infringed the price discovery process under a given supply and demand situation.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Delay in procurement of paddy — Achuthanandan to launch indefinite fast next week

Govt slaps safeguard duty on tapioca starch

Canara Bank to expand commodities exposure

Pala Marketing Society to expand block rubber capacity

Rubber prices rally on short-covering

Tea industry may save on levy cut

Upasi plea to do away with division of lots in e-auction

`Gold fund cost-effective saving'

Low cotton prices spur consumption

Vegoil market awaiting clear direction

Cashew exports may top Rs 2,500 crore

Prices of agri commodities in AP well above MSP