Business Daily from THE HINDU group of publications
Thursday, Jun 26, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Thursday, Jun 26, 2008 ePaper | Mobile/PDA Version | Audio |
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Agri-Biz & Commodities
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Tea Settlement banking system suspended at Coonoor tea auctions L.N. Revathy Coimbatore, June 25 The settlement banking system introduced in the Coonoor tea auction centre a couple of weeks ago is under attack. The Coonoor Tea Trade Association Committee has yielded to the pressure from the brokers, buyers and sellers by suspending the system, albeit temporarily for four weeks starting Thursday. IndusInd Bank was identified as the settlement banker. The system was introduced three weeks ago, at the sale no 21. The sale no 24 is to take place on June 26. Buyers, sellers and brokers are demanding for scrapping of the system as it is “found wanting and not feasible.” Preferring anonymity, an industry source told Business Line that the settlement bankers struggled to reconcile the accounts of each sale and the consequent delay in bank remittances affected prompt settlement. Teething problem“The bank initially indicated that the teething problem would be resolved within a fortnight, but the problem has mounted and seem to continue. Trans-shipments have been hit badly, warehouses are packed because teas cannot be lifted and transported to respective destinations without settlement of dues.” Asked to explain their concerns, the source said, “The basic document such as the Settlement Report is not in a standard format.” Industry insiders also alleged that the bank was not sending the payment remittance report on time and on a regular basis and of discrepancies in account statement. “This is making it difficult for us to settle our dues to our clients,” a broker representative said. Industry sources apprehend that there could be more than what meets the eye, for according to them, huge sums are locked for almost an entire week and the interest burden was another pinch on their pocket. More Stories on : Tea
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