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PS SUNDAR The Tea Board has said a new pan-India auction mode, “Bharath Auction”, will be rolled out from the first sale of 2022 across all auction centres - Coonoor, Coimbatore and Kochi besides Teaserve - in South India.
It said auctions will be conducted under new pan-India model and new rules with major changes relating to the bidding logic, reserve price, bid history and price rediscovery session.
However, buyers across various auction centres have raised objections to some of the provisions of the auction. They have termed some of the provisions as “anomalies and practically impossible” for their working.
“Although the Board had wanted to roll out the model a few months ago, we had represented to it to begin the new model in January because of the low volume due to winter and the concomitant high demand. This will help the players in the trade evaluate the functioning of the system and adjust their strategies for effective participation,” past Chairman of Coonoor Tea Trade Association L Vairavan told BusinessLine .
Price recovery
‘Bharath auction’ is just a new nomenclature for the ‘Japanese auction’ system envisaged by the Tea Board to replace the prevailing English auction model for better price recovery among all players in the trade.
Some of the major changes in the Bharath Auction relate to the bidding logic, reserve price, bid history and price rediscovery session. The bidding logic enables the auto increase in bids over the base price in specified timing of five seconds. In the past, buyers have to show incremental bids.
In the new reserve price system, 15 minutes before the start of the session, the reserve price can be altered against the existing dynamic method of altering the reserve price while the session was on.
The entire bid history will henceforth be available to help sellers track those buyers who had shown interest in their teas.
In the price re-discovery session which will be held at the end of the auction, teas which had remained unsold (out-lot) would be re-offered. This reduces the mandatory long wait for cataloguing as in the prevailing system.
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