Tea auction platforms are self-sustaining: Ray

PTI, Mar 2, 2020, 5:02 PM IST

Kolkata: Tea Board deputy chairman Arun Kumar Ray on Monday said the functioning of auction systems across the country at six centres is self-sustaining and the cheapest among other e-commerce platforms.

Ray’s comments came in the light of Tea Board chairman P K Bezbaruah recent comments that it is time for the statutory body to disassociate itself from the functioning of the auction system and just remain a licenced provider.

Bezbaruah had also suggested that the running of the system should be in the hands of financially capable private parties and not Tea Board.

“We charge a total of six paise per kilo from the sellers, traders and buyers for running the auctioning platform. At this price point, it is the cheapest platform and also self-sustaining in nature,” Ray said.

He said, “There is no cost to Tea Board and the sellers are coming voluntarily.”

The software for the auction platform has been developed by NSE.IT. “We have moved the auction platform to the cloud,” he added.

Ray said, “If the Tea Board withdraws from the auctioning system, then no private player will be able to run this kind of platform at this price point, that too based on cloud technology, and the entire system will collapse”.

IIM (Bangalore) had been roped in to make the auction platform more robust and user-friendly, he said.

Around 47 per cent to 48 per cent of the tea produced in the country comes to the auctions at six centres in Kolkata, Guwahati, Siliguri, Coimbatore, Coonoor and Kochi.

“The basis of the rationale of the auction system is to provide an avenue for sale of the produced teas. If Tea Board withdraws, then a vacuum will be created,” Ray said.

The Jorhat auction centre, which will be operated by a private party ‘mjunction,’ is yet to start operation. The rules and guidelines have been given by Tea Board, Ray said.