This has been suggested since the auction system can handle only finite volume and anything above would result in a fall in prices and quantities remaining unsold
United Planters Association of South India (Upasi) has suggested to the Government that it should not pursue the mandatory sale of tea through auction, instead, it should be left to the discretion of manufacturers/sellers to decide the mode of sale which they find it economically feasible.
This has been suggested since the auction system can handle only finite volume and anything above would result in a fall in prices and quantities remaining unsold. The auction system will add to the transaction time and cost without any assurance that it can fetch better prices or for that matter whether it could be sold even.
Free Trade Sample (FTS) serves as a promotional tool aimed at facilitating tea buyers in sampling and making their bids. However, FTS was not being utilised for its intended objective resulting in a significant financial burden on tea producers.
Upasi requested the Tea Board to reconsider the allocation of FTS as there is a lack of clarity on whether the samples provided aligned with the actual requirements of buyers for tasting and evaluating teas before placing bids.
From the perspective of sellers, there is a growing concern that an excessive number of samples, far exceeding the genuine needs of the trade, are finding their way into commercial trading. This situation directly contradicts the fundamental purpose of FTS, Upasi said.
The planters’ body also pointed out that the recent price trends in the past few months suggest a sharp decline in auction prices.
Meanwhile, tea offerings in Kochi auctions in sale 37 were lower due to Onam holidays in the production centres which led the prices to appreciate. According to traders, the market for good liquoring teas with black appearance was firm to dearer by Rs. 2 to Rs. 3. The quantity offered was 6,94,373 kg in CTC and 62 per cent of the total quantity sold was absorbed by blenders.
In orthodox leaf, an improved demand was noticed from CIS and West Asian countries, while upcountry buyers lent fair support. The quantity offered was 2,29,029 kg and the sold percentage was 82. Nilgiri whole leaf and brokens was firm to dearer.