ATI complains about tea auction system<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The traditional auction system of selling tea which currently
\nis run by a joint marketing board had failed to prop up the price
\nof local tea products, the Indonesian Tea Association (ATI) said
\non Wednesday.<\/p>\n
ATI chairman Rachmat Badruddin said that the joint marketing
\nboard was not effective because it had failed to invite new
\npotential buyers -- both overseas and domestic -- to participate
\nin the weekly tea auction.<\/p>\n
\"So there is no competition in the auction to push the price
\nup ... almost all the buyers are the same each time,\" he told The
\nJakarta Post.<\/p>\n
The joint marketing board, popularly known as KPB, is the
\ncountry's single body to auction tea on behalf of the state-owned
\ntea plantation companies.<\/p>\n
Therefore, the prices are determined at the auctions, and will
\nbe used as the benchmark for domestic tea prices.<\/p>\n
Rachmat said that the prices resulting from the weekly tea
\nauction did not reflect the true value of the tea and was still
\nfar from the International market price.<\/p>\n
He said that the current auction system was also complicated
\nbecause new buyers are required to secure a recommendation from
\nthe Jakarta tea buyers association to be allowed to join the
\nauction.<\/p>\n
Local tea prices have dropped to an average of 95 U.S. cents
\nper kilogram in 2001, from the previous year of about $1.10 per
\nkilogram, he said.<\/p>\n
The association said that Indonesian tea prices had continued
\nto drop over the past ten years mainly due to the lack of
\nmarketing efforts.<\/p>\n
\"We (Association and KPB) must work together to seek other
\nalternatives in the marketing system,\" Rachmat said following the
\nopening of this year's tea auctioning season.<\/p>\n
Yesterday's auction offered 1,500 tons of black and green tea
\nfrom several state and private companies, namely PT Perkebunan
\nNusantara IV, VI, VII, IX and XII.<\/p>\n
The private companies are PT. Pagilaran, PT Bantar, PT Tatar
\nAnyar Indonesia and PT Smart.<\/p>\n
According to Rachmat, aside from state companies, a number of
\nprivate tea producing companies also offered their products at
\nthe tea auction.<\/p>\n
He also said that Indonesia needs to apply an online system in
\nselling tea products.<\/p>\n
\"The online system will be more transparent and effective in
\nattracting more domestic and foreign buyers,\" Rachmat said.<\/p>\n
The association predicted that this year's tea production will
\nremain at around 150,000 tons.<\/p>\n
Indonesia, one of the world largest tea producers, after Sri
\nLangka, Kenya and India exports about 70 percent of its tea
\noutput to the United States, Europe, Australia, Pakistan and the
\nMiddle East.<\/p>\n
Some 10 percent is exported to Southeast Asian countries.<\/p>\n
Meanwhile, Yuddy Sulaeman, an official from the joint
\nmarketing board said that the continuing drop in the tea price
\nwas mainly due to an oversupply problem on the world market.<\/p>\n
\"All of the tea producing countries are now also experiencing
\na similar problem of falling prices,\" he told The Post.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ati-complains-about-tea-auction-system-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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