Financial Daily from THE HINDU group of publications
Tuesday, Mar 04, 2003
Financial Daily from THE HINDU group of publications Tuesday, Mar 04, 2003 |
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Agri-Biz & Commodities
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Tea Tea auctions in a tizzy after TMCO stay by HC Kohinoor Mandal
KOLKATA, March 3 UNCERTAINTY looms large over the leading tea auction centres all over the country. Buyers, sellers and organisers of the auctions are not quite sure whether to follow the rules and regulations laid down by the controversial Tea Marketing Control Order (TMCO) 2003. On Monday, auctions at the Calcutta Tea Auction Centre were disrupted as representatives of the Ahmedabad-based Gujarat Tea Processors & Packers Ltd decided not to follow the rules stated in the TMCO. They cited a stay order issued by Mr Justice Kundan Singh of the Gujarat High Court after conducting preliminary hearings on a petition filed by the Gujarat Tea Processors & Packers and Western India Tea Dealers Association. Sources said the case is being currently heard in the Gujarat High Court. ``The auction was going on smoothly. We made a successful bid to a tea lot but were against paying the premium as regulated in the TMCO because of the stay order. The organisers initially felt that we are making a mistake but, ultimately, when they realised their fault, they were clueless,'' an official of Gujarat Tea Processors & Packers told Business Line. Mr Kalyan Sundaram, Secretary of the Calcutta Tea Traders' Association (CTTA), the organisers of the Calcutta auction, said they had sought clarifications from the Tea Board. ``A buyer showed us a copy of the stay order issued by the Gujarat High Court. We are waiting for the clarification from the Tea Board. We hope to start the auctions from Tuesday morning,'' Mr Sundaram said. Industry sources said members of the tea trading fraternity were not too sure whether to follow the new guidelines of TMCO. It may be noted that due to this discrepancy auctions in Siliguri, Coonoor and Coimbatore are also held up since last week. Meanwhile, Mr P.O. Desai, Chairman of Federation of All India Tea Traders Association said due to the regular disruptions in the trade, retailer of tea may soon suffer from a major tea scarcity which would ultimately affect the consumers. The TMCO was gazetted in the first week of January this year. Immediately, traders from all over India protested against it. As a result, tea trade came to a complete halt as auction centres in Kolkata and Siliguri stopped operating. The Union Government and the producers are of the opinion that TMCO will bring transparency in the auction system and tea trade. According to the buyers, TMCO infringes on their basic rights and was not needed for enhancing the domestic tea trade. The date of registration under the new rules of TMCO started from February 1, 2003. Industry sources said a large number of players have already registered themselves. The last date of registration was February 28 this year. It may be noted that in the beginning of February, the Supreme Court passed an order, whereby all cases which were pending before different high courts would be transferred to it. This decision was taken in response to a transfer petition filed by the Tea Board at the Supreme Court.
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