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CHENNAI, July 23

THE Tamil Nadu Government has decided to constitute a new auction centre for tea on a cooperative basis at Coonoor, Nilgiris district, to support the small tea growers.

According to official information, a new industrial cooperative society will be set up to establish the auction centre on a cooperative basis. The Government will take steps to register the society and obtain the Tea Board's and the Central Government's approval to set up the auction centre. The objective is to help the small tea growers obtain better prices for the made tea.

Earlier, according to official information, the Government had taken efforts to reform the auction process in the existing system and to reconstitute the auction management committee with better representation by the small growers.

It had also attempted a market intervention strategy to enhance prices of made tea. However, the steps had not helped to generate better prices to the small growers, therefore, it is now hoped to set up a new facility to support the growers.

The move is in line with the Government's announcement in the Assembly during the 2002-03 Budget session, when it had expressed its reservation about the private auction centres.

The Small Industries Department has suggested that the State Government may set up the new auction committee with share participation.

It has recommended that the new centre would aim to ensure reasonable and remunerative prices to tea manufacturers, maintain stability and avoid speculation in prices, improve the quality of tea produced in the members' factories, run the auctions in a fair and transparent manner, ensure representation the industry from the primary marketing segment and disseminate market information.

It may be recalled that the Tamil Nadu Government attempted a market intervention mechanism last year by purchasing tea from the existing auction centres in Ooty and Coimbatore.

These were sold under the `Ooty Tea' brand through Public Distribution System.

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