India: Electronic-auction for Tobacco Trade

Source from:  The Times of India 09/07/2012

Electronic auction system (e-auction) will be introduced in tobacco trade from the next season. Stating that the system would enhance transparency, Tobacco Board chairman G Kamalavardhan Rao said e-auctions would help farmers get good prices. Rao said the entire stock produced during the last crop season in the state was transacted as farmers stuck to the fixed production size. He added that sales were completed by Tuesday in which 162.70 million kgs were purchased by traders. "Farmers produced 162.70 million kgs as against the authorisation of 162 million kgs. The discipline of farmers had helped them in fetching reasonable prices," he observed. The Tobacco Board chief said that the board had fixed a crop size of 170 million kg for the next season and appealed to farmers not to be misled by traders to produce more. Rao said chances of resumption of exports to China were high keeping in view the positive response from that country. Enditem