The Hindu : Andhra Pradesh News : Tobacco auction goes hi-tech

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Sunday, Jun 15, 2008
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Andhra Pradesh

Andhra Pradesh

Tobacco auction goes hi-tech

G. Nagaraja

The Tobacco Board introduces for the first time in the country
‘e-auctioning’ at Jangareddygudem

Photo: G. NAGARAJA

Trade tool: Minister P. Subhashchandra Bose tries his hand at a hand-held terminal meant to evaluate the quality of tobacco in West Godavari district on Saturday. —

JANGAREDDYGUDEM (WEST GODAVARI DIST): This upland town, tucked away in West Godavari district, has led the Indian Tobacco Board to open a new chapter in the history of tobacco trading by becoming a launching pad for the commissioning of ‘e-auctioning system’ for the first time in the country on Saturday.

The Board chose the auction platforms at this town for launching the project on a pilot basis in the country. The hi-tech e-system, commissioned by Minister for Social Welfare P. Subhashchandra Bose, is intended to replace the age-old manual system of the bidding process with chanter as an intermediary between the growers and buyers.

According to J. Suresh Babu, Chairman, Indian Tobacco Board, e-auctioning system, will function in an air-conditioned room near the platforms. While the traders grade the quality of bales in terms of physical and chemical characteristics, colour of the leaf, aroma, texture, etc. and quote the price with the help of hand-held terminals, the farmers watch the whole process on an LCD screen in the growers lounge in the vicinity.

Checking cartelisation

Mr. Suresh Babu, who was instrumental in making e-auctioning system a reality, asserted that the new system would check cartelisation of traders and ceiling of price which were the regular practices in the traditional manual system of bidding process. Chandrakant B. Kamble, Managing Director of the board, said that the system was, however, not a magic wand to give them whatever they wanted. The farmers could command better prices only when they raised the crop matching with the demand-supply position and improve quality in their produce.

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