The Hindu Business Line : Buyers call off boycott of Kolkata tea auctions

The solution
Buyers have agreed to accept the new brokerage rates.
Tea Board urged to fix a cap on the new rates.
However, reduction in the rates has been ruled out.

Kolkata , May 8

Boycott of the tea auctions by the buyers at the Calcutta Auction Centre for the last one week to protest against the increase of the brokerage rates was called off on Monday.

The buyers called off the boycott after the Calcutta Tea Traders Association (CTTA), the body which organises the auction in the city, assured them that the matter would be taken up with the Union Government.

Sources said till last Saturday, the buyers were adamant and wanted to continue with their protest. They were even contemplating taking legal action against the Tea Board directive.

Accept new rates

Later in the evening representatives of CTTA and Tea Auction Buyers Association of Calcutta (TABAC) had a meeting with the Chairman of the Tea Board, Mr Basudeb Banerjee.

It was learnt that the buyers had agreed to accept the new brokerage rates but they had reservations when it is applicable on high value and big volumes.

They want the Tea Board to announce a cap on the new rates.

Talking to Business Line, Mr Banerjee confirmed the development and said that buyers' concerns would be properly dealt with.

No reduction

"I have asked them to give us a proposal about their problems and concern and we would certainly look into it.

However, there is no chance of any reduction in the rates. In fact, the buyers have accepted it and had also started implementing it," he said.

On April 7, Tea Board issued a directive stating that the buyers' brokerage has been increased from a flat rate of Rs 5 per 100 kg to an ad valorem one. The new rates that were announced are 0.30 per cent in Kolkata, 0.22 per cent in Guwahati and 0.20 per cent in Siliguri.

The buyers started boycotting the auctions from May 2.

Subsequently, the Siliguri and Guwahati auction centre buyers' also joined the protest. However, considering Monday's development, it appears auctions would also normalise in the other two centres.