The issues connected with the pan-India tea auctions rules seem to be cropping up again at the Kochi auction centre, leading to the postponement of auctions this week.

According to Tea Trade Association of Cochin, the non-participation of buyers in the wake of protest over the delay in delivery orders in sale no 38, 39 and 40 at Kochi auctions has led to the rescheduling of auction.

It has been decided to conduct the 41st sale for both dust and leaf categories followed by 42nd on Tuesday after the managing committee of the association met on Friday to discuss issues pertaining to pan-India tea auction.

MK Ajith, Chairman, Tea Trade Association of Cochin, said that the Tea Board Chairman has called for a meeting in Kolkata on Monday (October 17) along with various other stakeholders to discuss the issues being faced by the trade in Kochi.

Delayed delivery orders Jinesh Dagali, President, Tea Buyers Association, told BusinessLine that majority of the buyers have raised their concern over the “post sale” operations administered by the several entities such as NSEit, Bank of India, the settlement bank and the Tea Board.

Most of the buyers are not getting delivery orders for the payment being made at the auctions or refund for an unsuccessful transaction.

The delivery orders are not generated after payments are made.

There have been instances where this has been delayed for almost 10 days.

According to him, majority of the buyers are from the small and medium category who has limited access to financial resources.

There has to be a system to return the funds to buyers on the same day.

The pan-India auction rule stipulates that all refunds should be made within 48 hours.

“We are now able to get the delivery only by the third or fourth day after the sale, which is not at all acceptable. Kochi is the centre where deliveries used to take place even with the progress of the sale,” he said.

Related Topics
comment COMMENT NOW