Tobacco Board Plans to Set up E-Auction System

Source from:  newkerala.com Oct 26 10/27/2008

Mysore, Oct 26: The Tobacco Board has planned to launch e-auction system from next month in the state. Tobacco Board sources told UNI that e-auction would replace the traditional system of manual bidding for tobacco at the e-auction platforms. There are ten tobacco auction platforms in Karnataka, majority of them in Mysore district. The board would begin the e-auction from November 3 in Hunsur on an experimental basis, they said. Regional Manager of the Board Aziz-ul-Haq said the board would give hand-held devices to each registered buyer to quote his offer and also exercise the option to increase the bid. This system was aimed at not only brining about transparency in the transactions, but also ensuring a fair price for the farmer. The board has tied up with the Bangalore-based IT company that has designed and developed the software for the e-auction system. The board decided to introduce e-auction system in Karnataka after the successful pilot project at Jagareddygudem in west Godavari district of Andhra Pradesh recently. Shortly, this system would be extended to all the ten auction platforms in Karnataka. 'Before the launch in Hunsur, we will hold trials for buyers and the staff of the board," he added. In the e-auction system, the buyer examines the tobacco bales to evaluate its physical and chemical characteristics before placing his bid on the hand held terminal in a wireless network environment. After the inspection of the tobacco bales, the board's auction inspector would fix a minimum price for the product after which the buyers could begin the bidding process. The buyers could increase the bid amount in multiples of 20 paise for every kg. There was no ceiling for the bid, the board official said. While the buyers participate in the bidding, the farmers watch the process on a giant LCD screen in the growers lounge in the vicinity. Board officials said the auction process has a number of advantages over the manual system of bidding. For instance, the identity of the bidder and his quote could easily be established. He added. Enditem