Guwahati tea auction centre witnesses increase in private sale

Guwahati tea auction centre witnesses increase in private sale despite VAT cut GTAC failed to attract more tea. .

By Bikash Singh, ET Bureau | Updated: Mar 20, 2013, 07.46 PM IST

GUWAHATI: Sale of tea through private mode has increased in Guwahati Tea action centre (GTAC). The inflow of tea from Assam's Brahmaputra valley and Barak Valley to Siliguri tea auction centre and Kolkata tea auction centre has increased.

Despite reduction in VAT GTAC) failed to attract more tea. GTAC was the largest CTC (crush-tear-curl) auction centre in the country till 2010. In 2011 Kolkata took over Guwahati as the largest CTC auction centre.

VAT in Assam is less by half percent in comparison to West Bengal but still GTAC is behind in volume of sale through auction mode than that of Kolkata Auction Centre. Kolkata sold about 91 million kgs (mkgs) CTC tea at an average price of Rs 140.50 in 2012 from January to December whereas GTAC sold about 84 mkgs CTC tea at an average price of Rs 130.62 in the same period.

Sale in 2012 through auction in GTAC was less by about 3 mkgs in comparison to 2011 during the same period. In 2012, GTAC auctioned 123 mkgs and in 2011 it was 125mkgs.

Reduction in VAT has been seen huge increase in sale in GTAC through the private mode. Sources pointed out that around 23 percent of total volume of GTAC were sold through private mode which is not a healthy sign for an auction system and thereby for the Assam tea industry.

"In 2011, only about 8.2 percent of the total tea was sold in GTAC through private mode. In 2012, only about 4 percent of the total CTC tea was sold in Kolkata Auction Centre through private mode. VAT difference between auction mode and private mode is 3% in West Bengal," sources said.

Quantity sold in GTAC through 'auction mode' between Jan to Dec in 2012 v/s 2011

Categories of tea	GTAC 'auction mode' sale in 2012 in kgs	GTAC 'auction mode' sale in 2011 in kgs
CTC	84,473,585.9	86,144,684.0
ORTHO	611,099.8	249,811.8
DUST	37,890,768.7	39,231,134.5
TOTAL	122,975,454.4	125,625,630.

: Quantity sold in GTAC through 'private mode' between Jan to Dec in 2012 v/s 2011

Categories of tea	GTAC 'private mode' sale in 2012 in kgs	GTAC 'private mode' sale in 2011 in kgs
CTC	28,135,760.7	7,766,415.6
ORTHO	19,472.6	15,992.3
DUST	8,601,223.1	3,513,560.2
TOTAL	36,756,456.4	11,295,968.1

Quantity of "Assam CTC Tea" sold through 'auction mode' in GTAC, CTTA (Kolkata Auction Centre) and Siliguri Auction Centre in 2011 and 2012 from Jan to Dec

Sold through GTAC in 2012 in million kgs	Sold through GTAC in 2011 in million kgs	Sold through CTTA in 2012 in million kgs	Sold through CTTA in 2011 in million kgs	Sold through Siliguri Auction Centre in 2012 in million kgs	Sold through Siliguri Auction Centre in 2011 in million kgs
Assam CTC (Leaf and Dust) - manufactured in Brahmaputra valley	107.8	110.6	89.1	96.6	0.5	0.25

Quantity of tea manufactured in Brahmaputra valley and Barak valley sold through Siliguri Tea Auction Centre in 2011 and 2012 from Jan to Dec

Tea produced in Brahmaputra valley sold through Siliguri Tea Auction Centre in 2012 in kgs.	Tea produced in Brahmaputra valley sold through Siliguri Tea Auction Centre in 2011 in kgs.	Tea produced in Barak valley sold through Siliguri Tea Auction Centre in 2012 in kgs.	Tea produced in Barak valley sold through Siliguri Tea Auction Centre in 2012 in kgs.
CTC	420,002.00	212,811.00	59,120.00	38,854.00
DUST	76,372.00	42,215.00	13,744.00	207.00
TOTAL	496,374.00	255,026.00	72,864.00	39,061.00

Quantity of tea sold through 'private mode' in GTAC vis-à-vis CTTA (Kolkata Auction Centre) in 2011 and 2012 from Jan to Dec

Sold in GTAC through 'private mode' in 2012 in million kgs.	Sold in GTAC through 'private mode' in 2011 in million kgs.	Sold in CTTA through 'private mode' in 2012 in million kgs.	Sold in CTTA through 'private mode' in 2011 in million kgs.
CTC	28.1	7.8	3.3	2.9
ORTHODOX	0.02	0.01	3.5	3.8
DUST	8.6	3.5	2.1	1.8
TOTAL	36.7	11.3	8.9	8.5