August 3: The government had initiated the process of establishing a tea auction market around eight years ago. However, the government is yet to implement the concept. The government had even allocated budget for setting up the auction market and a lab for testing the quality of tea. Experts believe that the tea produced in Nepal will get a good place in the international market if such an auction market is set up. However, there has not been any tangible efforts in establishing the auction market.

The concept of auction market has been making rounds since the last thirteen years. It was eight years ago that a committee headed by tea producer Suresh Mittal was formed to set up an auction market. The then section officer of the National Tea and Coffee Development Board Indra Adhikari was the member secretary of the committee. The committee had prepared ‘guidelines’ for the auction market and also set up a lab in Jhapa and required software with an investment of Rs ten million provided by the Ministry of Agriculture and Livestock Development.

There were plans to include all the tea producers of Nepal in the auction market. As per the plan, all the tea industrialists were also affiliated to the auction market. However, the auction market is yet to function.

Dilliram Baskota, general secretary of the Himalayan Orthodox Tea Producers Association, says that the auction market would have been set up years ago if the concerned parties had worked as per their  commitment. Both the government and the industrialists need the auction market, says Baskota. However, the auction market has not come into operation due to the stance of both the sides.

Both the government and the industrialists have been blaming each other for the delay in operation of the auction market.

Spokesperson of the National Tea and Coffee Development Board Dr Deepak Khanal says that the auction market could not be operated due to the stance taken by the industrialists after all the required infrastructure was ready. According to Khanal, the tea producers declined to join the auction market until their demand to seek bank loan by keeping the tea in warehouse as collateral was fulfilled. They also demanded grant from the government for exporting tea. The board tried to address the demands of the tea producers through the Ministry of Agriculture to failed to do so.

On the other hand, the tea producers blamed the government for not fulfilling their demands. They also accuse the government of dilly-dallying in bringing the auction market into operation fearing that the transaction of the market would be transparent.

“Once the auction market comes into operation, all the transactions will be transparent. The government fears that the transactions of the state-owned tea garden will also become transparent. Therefore, the government does not want to operate the auction market,” said an industrialist requesting anonymity.

Tea auction is the process of selling tea through software using a common platform where the tea producers and businessmen from within the country and abroad will have access. The software will have information about the price and samples of various brands of tea. The dealers can make online order for tea from overseas. This auction market started in the UK and entered the Indian market in the 1980s. However, it is still not certain whether Nepal will implement it or not.