Commodities

Tea Board to launch Japanese auction model

P S SUNDAR Coonoor | Updated on July 21, 2020 Published on July 21, 2020

Plans pilot run in Coonoor

The Tea Board has decided to launch the Japanese auction model as a pilot project at the Coonoor Tea Trade Association’s auction centre.

“It will be rolled out in other centres shortly after the pilot run in Coonoor”, Tea Board Executive Director, M Balaji, said.

The Japanese model has been suggested by the Indian Institute of Management Bangalore (IIMB) to whom the Tea Board had assigned the task reforming the existing e-auction platform to improve the participation of buyers in the pan-India auction and to further improve the existing system for better price realisation.

IIMB has submitted its recommendations on the operational, technological and regulatory issues.

Better price realisation

“The Tea Board has, in principle, accepted the recommendations of the IIMB to recast the present pan-India e-auction system”, Balaji announced.

“The new system aims at improving price realisation, simplifying the process which leads to improvement in quality of tea offered in public auctions and thereby ensuring better price discovery”, he stated.

Explaining the new auction system, he said, “The auction price is integrated with time, providing flexible buying and selling options and will be simple to manage and participate in auction. Buyers and sellers can participate in a transparent manner. The out lots will be minimised and the product, based on the quality and demand, will fetch higher price”.

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Published on July 21, 2020
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