National Textile Corporation (NTC) has started e-auction of yarn. The first e-auction of NTC yarn was launched by the Union Minister of State for Textiles (I/C), Shri Santosh Kumar Gangwar.
- The decision has been taken to give maximum opportunity to dealers for lifting of NTC stock and thereby reduce inventory and improve cash flow.
Mills selected for selling of produce through e-auction
Vijamohini Mill, Kerala Lakshmi Mill and Rajnagar mill have been selected for selling of its produce through e-auction.
Who will conduct e-auctions?
NSEiT, a National Stock Exchange subsidiary has been roped in to conduct the e-auction of yarn. It has been conducting e-auctions for various PSUs.
About e-auction process
The e-auction route has been made open for all registered dealers of NTC. Each dealer has been provided a unique ID and password and trained by way of mock e-auctions and practice sessions.
- Base prices will be fixed on Wednesday every week and e-auction will take place on Thursday from 03:30 PM to 04:00 PM
How e-auction mechanism will be helpful?
Currently yarn is sold through dealers who are registered mill-wise with NTC as per due procedure. The stock at the agreed price is then made available to the registered dealers who lift the material & payment is made as per NTC rules.
- If the material is not sold, the same remains unsold and stock piles up.
Thus e-auction provides an opportunity to evade this problem by leading to higher stock up-take, reduced inventory and improved cash flow.