The Hindu Business Line : Mixed response to open outcry system at tea auctions

The reversal to open outcry system at tea auction centres has evoked mixed reaction. According to trade sources, the change has not affected the market sentiment.

Hitherto, buyers could log on from anywhere and bid. Now, with the system going manual, it would necessitate the buyer's presence in the trading hall.

The old generation traders had always contended that the electronic auction system should not have been introduced. "The system did not give us enough time to complete the bid and the price realisation was not at all satisfactory,'' a broker said. But these traders had neither objected the introduction of manual trading openly nor were they comfortable with the screen-based trading.

The prices, sources said, looked up though not on expected levels. "The offer volumes dipped considerably, by almost 30 per cent. Good quality teas were quoting dearer by Re 1 to Rs 2 with support from exporters.''

Market sources further said small buyers were able to take quantities because the division of lots was possible in manual bidding.

Also, some old generation buyers have been reinstated. This is because the trade cannot, sources fear, manage with the existing staff strength. "When the auction process took the electronic route, the industry shed the extra flab. Now a couple of companies have started calling back people familiar with the manual outcry system," the sources said.