Sale of tea by auction started in London in the year 1839. Kolkata Auctions started in 1861, Kochi in 1949, Coonoor in 1963 and Coimbatore in 1980. Sale by the auction method is ideally suited for a commodity like tea because of the infinite varietiesand grades of tea and the scattered location of the estates, often in far- flung areas. Besides, buyers from different parts of India or the world can procure their requirements from a central point like a port city, where warehousing and banking facilities are well developed. Samples of teas coming up for auctions are distributed to the buyers well in advance so they come fully prepared to buy their requirements. The Auctioneers, normally referred to as' Brokers' in the tea trade, taste and value theteas and their valuations, which act as a guideline, are released to all members of the trade. The prices realised at these public auctions reflect the free play of market forces and the levels prevailing at the various auction centres of the world.
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