Tea trading at the Kolkata auction houses were postponed today, in view of the new Tea Marketing Control Order (TMCO), which has come into effect from January 1.
The Indian Tea Association (ITA) also held a buyer-seller meet to take stock of the situation. Bharat Bajoria, chairman ITA said that the buyers have asked for more time to study the implications of the order. He however clarified that since the TMCO was already into effect the buyer and sellers would have to abide by the order.
According to industry representatives, the main issues that have irked the industry is that Tea Board has been entrusted with decisive powers in an effort to bring about a fair price in the industry.
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Sources said that unlike the previous order, the new order has not quanitified the quantum of purchase that must be made by buyers. Each buyer seller will be set a limit through for sale according to its stock level and there must be more transparency in pricing. The entire exercise would be monitored by the Tea Board.
Also, what has made the buyers wary is that the order has set forth stringent norms for sampling. However, the producers seemed less perturbed by the order than the traders.