STAFF REPORTER
GUWAHATI: A Parliamentary Committee on Commerce has asked the tea industry to go for online selling of teas more extensively.
The committee, in its report tabled in the Parliament recently, said the coverage under the e-auction portal was confined to merely 40 percent of the tea production in the country. It recommended that the percentage of tea routed through the e-auction portal should be enhanced to include maximum tea growers.
The percentage of tea routed through auctions in 2018-19 was only 44.16 percent (approximately) of the total production leaving the rest of the tea to be marketed through private means.
According to the Tea Board of India, an efficient tea-auctioning process should be implemented in the country to synchronize with the global auction policies for better price realization.
“Digitization of the auction system promises a reduction in transaction costs and fair price discovery. While we have made the transition from the hammer to the mouse, much remains to be done to reduce transaction costs of auction sales,” the Parliamentary Committee said. Industry officials said the new auction center, which will start operating in Jorhat next month, will lead to better price discovery.