Tea Board should disengage from auctioning system: Chairman
He said that the Tea Board's role should only berestricted to issuing licences for opening up the auctioncentres after duly checking their financial capabilities.
"It is the right time that the Tea Board disassociatesitself from the functioning of the auctioning system and bejust a licencing body," Bezbaruah told .
The present auction scenario in north India represents"a failure of the system" as the purpose of discovering a fairprice has been defeated, he said.
Bezbaruah said as per the Tea (Marketing) ControlOrder or TMCO, 50 per cent of the produce has to bemandatorily routed through the auctions.
Varieties of tea are being sold at Rs 50 per kg orlower and even good quality primary tea fetches a price of Rs60 a kg at the auction centres.
"The same tea when offered outside the auction systemis fetching prices which are higher by up to Rs 30 per kg," hestated.
"What I am now suggesting is that Tea Board shouldwithdraw itself from the process and bring in a competitiveenvironment where anyone with adequate financial strength andexperience can set up such centres," he said.
The six auction centres in Cochin, Kolkata, Siliguri,Coimbatore, Guwahati and Coonoor are controlled and subsidisedby the Tea Board, Bezbaruah said, adding that the softwareused by these units are also facilitated by it.
"If Tea Board denies technical support, these auctioncentres will immediately close down," he said.
He asked why a system that is not benefiting the mainstakeholders of the tea industry, the producers and theworkers, should be subsidised by a government agency.