IIM-B to revamp existing tea-auction methodology for improved price discovery
(Sourced from PTI)
India's leading B-school IIM-Bangalore has been entrusted to devise the revamping of the existing tea auction methodology for improved price discovery. A tea industry source said that the Tea Board has formed a special committee and put the process on fast track mode. The decision was taken 25 days ago, said the official. "Hopefully, price discovery will be better after the revamp," he added.
"The present prices in north India is making it difficult for the industry to survive," continued the source. In north India, prices should rise by Rs. 30 to Rs. 35 per kg from the existing flat levels of Rs. 153, as compared to south India, where prices were up by Rs. 30 per kg from the present levels of Rs. 100.
"South Indian tea is cheap, and poor in quality as compared to north India. Prices of such tea are rising because people are demanding cheap tea and marketers are making good efforts to make them saleable," the source said. He said that if prices don't increase in north India, many gardens would close down, as is happening in the Dooars region of West Bengal.
"Many gardens will become sick and close down," said the official. Even the current scenario in Assam is not good, he further added. The existing e-auction system that was started 11 years ago in 2009, has been faced with glitches.