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The trade is yet to reach some level of comfort with the pan-India e-auction system, rolled out for tea in June this year.
“While we welcome the implementation of the pan-India e-auction system, certain inflexible rules introduced by the Tea Board is creating numerous operational difficulties to a large number of small and medium buyers. We want participation of more buyers in the e-auction for only this can create competition for quality teas and ensure fair price realisation for the manufacturers,” UV Saraf, Chairman, Tea Trade Association of Coimbatore, said.
He further explained that the new divisibility rule did not permit division of a lot containing less than 20 bags or withdrawal of splitting of delivery order by the winning buyer (after making full payment).
A cross-section of tea brokers that BusinessLine spoke to said that the Board had rolled out “post sale” notice last week, which till date is only on paper and not implementable.
Asked to explain the implication of the notice, a member of the trade (preferring anonymity) said, “the broker prints the invoice (tax invoice) and gives it to the buyer after the sale. Payment is made by the buyer on the basis of the invoice and delivery taken thereafter. But last week, the Board said that this invoice would henceforth be generated online. The system it appears is not in place (ready). Coimbatore sale took place on Wednesday and till late Saturday, we have not been able to generate the invoice. Delivery and payment is stuck, No one has a clue as to when this would be resolved.”
When asked to comment on this issue, Paulrasu, Executive Director, Tea Board, Coonoor, said “the implementing partner, NSE IT, is addressing this on a war footing. It will be sorted out soon.”
A good number of buyers, who had bought at Sale no 32 at the Coimbatore auction centre (last Wednesday) said they were contemplating to cancel the contract as they have been unable to take delivery of the teas.
“There is confusion on all fronts,” said another, highlighting the plight of the two auction centres — Coonoor and Coimbatore — in Tamil Nadu.
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