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M.R. Subramani

Coonoor, Sept. 9 The Tea Board plans to re-launch electronic auctions simultaneously from all the six auction centres by the end of this year.

“Last time, we did not have any problems in launching electronic auctions in the South. But this time, we want the auctions to be launched in the North also,” said Mr Basudev Banerjee, Chairman, Tea Board, on the sidelines of the United Planters’ Association of India’s 115th annual conference.

Electronic auctions launched a couple of years ago faced technical and operational problems that the Tea Board had to discontinue it.

The auction centres in the North were also not fully prepared for the launch then.

The board is now attempting to re-launch it with the information technology wing of the National Stock Exchange (NSE.IT) helping in preparing foolproof software for conducting the auctions.

“We plan to launch in November because it will be the end of the plucking season in the North. This will ensure that the auctions will be up and running without much problem by March-April, when arrivals begin in the North,” said Mr Banerjee.

At least three months in a year during winter, no plucking of tea leaves takes place in the growing areas in Assam and West Bengal.

The new system being developed will ensure that the buyer will be anonymous until a deal is struck. Once the deal is through, the buyer’s name will be revealed. The sellers name will, however, be known to the buyers to help them assess the offers.

“Currently, we are training all the players on the system. Once they gain confidence and know how to handle, we will begin testing the system, said Ms Roshni Sen, Deputy Chairperson of the Tea Board.

“Currently, we are faced with the problem of space. We expect all 400 traders in each trading centre to come for the electronic auctions initially. After that, anyone can take part in the auction from any part of the country,” Ms Sen said.

The offerings will continue to be graded at the auction centres and the delivery system is being worked out.

“A settlement mechanism for the electronic auctions is being worked out by NSE.IT and National Commodity Clearing Limited,” Mr Banerjee said.

“The electronic auctions will revolutionise the way tea is traded in the world. Even Mombassa (Kenya) and Colombo (Sri Lanka) officials have shown interest and they are expected to take a leaf out of our experience,” he said.

Ms Sen said the electronic auctions will ensure total transparency and a fair price discovery besides processing sales faster. “Like cardamom, we expect more tea to come into the auction system once the electronic sales are launched,” she said.

Currently, 55 per cent of the 900-odd million kg tea produced in the country is brought to the auctions.

“Again, division of lots is currently made by a single bidder who emerges successful. He usually divides it to his own people. But the electronic auctions will now make the division of lots at the best price at which the offering is bid,” Ms Sen said.

Traders had a glimpse of the new electronic system on Monday evening when a demonstration was held.

More Stories on : Tea | E-Commerce & E-Business

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