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UPASI welcomes electronic auction

Kochi: The United Planters’ Association of Southern India president, D.P. Maheshwari, has welcomed the introduction electronic auction in the tea sector.

The association supported the introduction of electronic auction as it had many advantages like transparent price discovery and provision for safe, Mr. Maheshwari in a press release issued here on Saturday. The benefits are already evident in terms of transparent and better price discovery where the system is fully functional. It is but disappointing that certain segments are not fully appreciative of this initiative. In this context, UPASI wished to reiterate its strongest support to the Tea Board of India for their efforts in implementing electronic auctions at all centres across the country, he said. The advantages would reach all segments of trade, he added.

Mr. Maheshwari’s statement comes in the wake of some tea traders in Kochi complaining of technical difficulties like ‘misleading and confusing displays relating to bids.’ There are reports that around Rs.100 crore worth of tea remained unsold at the Kochi auctions.

The Kerala High Court had issued notices to the Tea Board and the Tea Trade Association of Cochin, while admitting a petition filed by the Cochin Tea Buyers’ Association challenging the implementation of the 100 per cent electronic auction system. The next hearing is slated for Monday, sources in the industry said. Auctions scheduled for Tuesday and Wednesday could not be carried out due to opposition from tea buyers.

They had been reportedly seeking gradual reforms to benefit all sections of the trade. The electronic auction platform had been jointly developed by the National Stock Exchange’s IT arm, in consultation with prominent trade bodies. Kochi is a major auction centre for tea along with Coonoor and Coimbatore.

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