The Hindu Business Line : Snags in system delaying tea e-auctions

ISN'T the click of a mouse much easier to confirm a bid than the manual outcry at auction? While it is generally perceived that automation would accelerate the workflow, tea traders think otherwise.

Brokers say that confirmation of a bid under the electronic auction system takes longer than under the manual process. Disruption in connectivity, they contend, slackens the process.

"The time lag for confirmation of the bid is dragging the entire process, because it has to reach the central server at Gurgaon. Then, the entire community of traders log on to the system in their respective centres to take part in the auction. More often, the system tends to hang, otherwise, there is a perceptible delay in bid confirmation," a broker told Business Line.

He explained that under the eAuction system, the number of lots confirmed every minute was four times more than under the conventional system.

"While the new system gives room for sale to be effected more quickly, it did not leave much time for the brokers to knock down the bids. Twelve lots a minute is too much," the source said.

It is learnt that the seller confirmed three lots every minute under the manual outcry method, while it is 12 in 60 seconds under the electronic mode.

While stating that genuine buyers were not getting the bid, the broker said that their representations to the Tea Board on such matters remained unresolved.

Meanwhile, the quantities on offer have peaked.

"In Coonoor alone, about 18-19 lakh kg of tea is traded every week. The weekly auction is scheduled for Thursday and Friday. If the buyer wants to take delivery, he will have to confirm before business hours close on Saturday (by noon). The delay in bid confirmation under the e-auction system has added to our woes, for, the price levels have already started to drop by Re 1 or Rs 2 per kg," the source said.

Trade sources say that over 50 per cent of the arrivals either remained unsold or were pulled out of auction for want of a better deal.

With the Tea Board insisting that all the teas be routed only through the eAuction system, brokers see no respite to their woes.

"We sought the immediate intervention of the Tea Board. Though they assured to resolve this issue within a week, it is more than a fortnight now and the position has not changed," the trader lamented.

According to brokers, the unsold teas at the auction is offloaded at the outlisted sale, conducted every week. "Here, you can get tea for dirt-cheap rates. It can be a distress sale for us, but buyers stand to gain," the source said.

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