Kolkata, Dec 22 (PTI) Tea Board Chairman Saurav Pahari said the 'Bharat auction' system will be implemented in north India only after consultation with stakeholders in the industry.

Speaking at the annual general meeting of Calcutta Tea Traders' Association (CTTA), Pahari said implementation of the pan India auction system is a mandate given to the Tea Board.

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"Be rest assured that nothing will be done without consulting all the stakeholders. There will be sufficient stakeholders' consultation", Pahari said.

CTTA outgoing chairman Anish Bhansali, however, said the present system of auction in north India has "proven its resilience and there is no need to shift to the new process".

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According to the industry, north India covers tea mostly from Assam and West Bengal, while South India refers to Tamil Nadu, Kerala and Karnataka.

"The industry had already seen the change from manual auction to an electronic one. The electronic auction has had its benefits but removed healthy competition from the system. The implementation of the Bharat auction is uncalled for as the industry had come to terms with the present format in North India," Bhansali said.

The present system of auction in north India is called the "English auction system", he said, adding that the 'Bharat auction' is functioning in South India.

According to him, 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 varieties".

Bhansali claimed that 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".

Asked about the opposition to the Bharat auction system in north India, a Tea Board official said that there is "a resistance to every change and the same thing was also witnessed in South India".

Pahari said Tea Board is going through a phase of transition and it has not lost its relevance in the present day.

"I have told the commerce ministry that existence of the Tea Board is needed. The board continued to have its relevance which stems from the fact that it has always played the role of a facilitator, mentor and interest aggregator".

Pahari also stated that in the days to come, this role played by the Tea Board needs to be reinforced.

There had been talks going on in the ministry about merger of all the boards for commodities such as tea, coffee, rubber and spices.

"Will seek industry support that it still has its importance and no reason to done away with", Pahari added.

He also said in the days to come, quality of the produce would only merit subsidy by the Tea Board, and it will be in the form of an 'entitlement'. PTI dc

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