The Bharat auction system for sale and purchase of tea in auction centres will be implemented in north India only after conducting adequate mock sessions and consultations with stakeholders, Tea Board India chairman said on December 22.
Key points
- Recently, Tea Board Chairman said the ‘Bharat auction’ system will be implemented in north India only after consultation with stakeholders in the industry.
- The present system of auction in north India is called the “English auction system” and the ‘Bharat auction’ is functioning in South India.
- The “volume and price realisation in north India auctions are far higher and better respectively than in South India.
- These are only due to difference in quality, both of orthodox and CTC. The north India covers tea mostly from Assam and West Bengal, while South India refers to Tamil Nadu, Kerala and Karnataka.
- The price discovery in tea “has nothing to do” with the type of auction or software, but only “depends on the quality of produce and demand-supply dynamics”.
