Terms for Darjeeling e-auction

Calcutta, May 13.TT: Darjeeling tea growers want global buyers to participate directly in the proposed e-auction of their varieties.

The Darjeeling Tea Association (DTA), the representative body of the growers, has put forward the recommendation in a meeting with Tea Board chairman M.G.V.K. Bhanu.

The association feels the practice of limiting e-auction to local entities will not give the growers the desired returns. The association has rejected the normal e-auction procedure.

The e-auction will bring global buyers, who can participate directly in their own currency after a registration process.

“They (DTA) have made a suggestion for global e-auction. They have refused to accept the normal route. It is possible and the board is willing to support the idea. At present, e-auctions are limited to regional buyers registered with the respective e-auction centres. What they want is any buyer registered with the Tea Board to participate. Operational issues have to be worked out,” said Bhanu.

Operational issues include establishing bank linkages for payments, authenticity of the buyers and ensuring security of transaction.

At present, global buyers operate through their agents in respective countries.

The industry had earlier expected e-auction of Darjeelings to start from early this financial year. Darjeeling produces 8.5 million kg of tea.

“There will be no value addition for us in the normal e-auction of tea. From what we have suggested, buyers across countries can directly buy tea in their respective currencies and get the authentic product. It is now restricted to local buyers of selective auction centres. We have received a very positive feedback from the Tea Board, so much so that we expect some development over the next six months,” DTA chairman S.S. Bagaria said.

The “bhanji” variety between the first and the second flush is usually considered most suited for e-auctions.

“There is an ERP software solution, which can be used for the purpose. One will have to disclose credit card details and will be able to participate on a real-time basis,” Bagaria said.

The software helps facilitate easy data flow of finance, distribution and inventory management.

The e-auction will ensure a fair price discovery, exposure to potential markets and security of payments. It will ensure data accuracy for the government.