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K. Ananthan

The Union Minister of State for Commerce and Power, Mr Jairam Ramesh, holds the hammer down and mouse up to signal the launch of the electronic auction system for tea at the Tea Trade Association of Coimbatore. (from left) Vice-Chairman of the Tea Trade Association of Coimbatore, Mr A.S. Singhar, Chairman of the Association, Mr Chandrakant and Executive Director of the Tea Board of India, Mr R.D. Nazeem. —

Our Bureau

Coimbatore, Dec. 21 The Minister of State for Commerce and Power, Mr Jairam Ramesh, signalled ‘hammer down, mouse up’ to mark the commencement of Web-based tea auction at the Tea Trade Association here on Saturday.

Five lots were traded immediately thereafter as the Minister, Tea Board executives, brokers and buyers watched the trade go live.

Later, giving away mementos to the brokers who participated in the launch event, Mr Jairam Ramesh said a fiscal incentive would stimulate the use of the electronic auction system.

Out of the 950 million kg (mkg) of tea produced in the country, roughly 53 per cent is being marketed through the electronic auction system.

“A fiscal incentive would enthuse sellers to route the entire volumes of tea traded in the country through this Web-based platform, including the good, high-value teas that are at present sold through private sale,” he said.

On production, he stressed the need for moving over to production of Orthodox teas.

He pointed out that various incentives were being offered to accelerate the production of Orthodox teas from about 90 mkg at present to 120 mkg by 2011.

On exports to Pakistan, he said, “our teas will continue to sell there. We are looking to increase our exports to Pakistan to 30 mkg from the current level of 10 mkg. While marketing of tea with Pakistan is ‘put on pause’, they are continuing to buy.

He further said a detailed proposal for sharing the social cost of infrastructure in plantations, estimated at Rs 2,800 crore, awaited the approval of the Cabinet.

“We are hoping to get this cleared in about two months. As per the proposal, the union government would fund to the tune of Rs 1,400 crore and the balance is expected to come from growers.”

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