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ITA to send tea varieties to Dubai before setting up auction centre
Kolkata, May 16: As a prelude to setting up a full-fledged auction centre in Dubai, Indian Tea Association (ITA) has decided to send some varieties of tea (15,000 to 20,000 kgs) on on-account to that country by begining of August to gauge the potential of the market.
Kolkata, May 16: As a prelude to setting up a full-fledged auction centre in Dubai, Indian Tea Association (ITA) has decided to send some varieties of tea (15,000 to 20,000 kgs) on on-account to that country by begining of August to gauge the potential of the market.
"We had asked Contemporary Targett, a leading tea broking house, to prepare a report on how to move towards setting up an auction centre in Dubai and it has suggested to first send some teas on on-account basis to gauge the potential of the market," said C K Dhanuka, chairman of ITA, the apex body of tea producers in the country.
Dhanuka said Contemporary Targett will make a presentation before the members of ITA on may 24 after which they will dispatch the first assignment within next 40 to 45 days.
He said it would not be wise to suddenly make huge investment in setting up auction centre and then come to know that it was not worth.
"It will create a bad impression (as had happened after closure of London Auction Centre), if we are to close down the Centre for some reason or other and so we are weighing all pros and cons and moving cautiously."
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Dhanuka said after the presentation, ITA members would start shifting some teas for sale from Dubai on on-account basis through Contemporary Targett on behalf of ITA.
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"This arrangement would continue for at least six months and during this period if we found that there is enough market and we can sell upto say around one lakh kgs of tea from Dubai to other West Asian markets, then we will put up the investment for full-fledged auction centre," he said.
< BR> Bureau Report
"We had asked Contemporary Targett, a leading tea broking house, to prepare a report on how to move towards setting up an auction centre in Dubai and it has suggested to first send some teas on on-account basis to gauge the potential of the market," said C K Dhanuka, chairman of ITA, the apex body of tea producers in the country.
Dhanuka said Contemporary Targett will make a presentation before the members of ITA on may 24 after which they will dispatch the first assignment within next 40 to 45 days.
He said it would not be wise to suddenly make huge investment in setting up auction centre and then come to know that it was not worth.
"It will create a bad impression (as had happened after closure of London Auction Centre), if we are to close down the Centre for some reason or other and so we are weighing all pros and cons and moving cautiously."
< BR>
Dhanuka said after the presentation, ITA members would start shifting some teas for sale from Dubai on on-account basis through Contemporary Targett on behalf of ITA.
< BR>
"This arrangement would continue for at least six months and during this period if we found that there is enough market and we can sell upto say around one lakh kgs of tea from Dubai to other West Asian markets, then we will put up the investment for full-fledged auction centre," he said.
< BR> Bureau Report