Kochi (PTI): Online auctioning of tea will fetch fair price for the growers, Minister of State for Commerce and Power Jairam Ramesh said on Saturday.

"With the new system coming into place, we expect a fairer price discovery mechanism for growers," Ramesh said while inaugurating the Electronic Auctioning of Tea here.

The e-auctions had earlier been launched in Kolkata, Guwahati, Siliguri and Jalpaiguri and Kochi is the fifth centre.

Efforts would be made to ensure that by January next year, trading would be completely through electronic auctions.

There is some degree of scepticism in South India about electronic auctions and UPASI had expressed some fears, Ramesh said.

The entire auction process has been re-designed this time and web-based auctions system has been introduced and there is no possiblity of collusion between buyers, he said.

Division of lots is permitted in the new system, which will also see an increase in trade volumes. The settlement system will be the key.

The minister said by September next year, all existing physical infrastructure of the auction centres would be converted to warehouses, multiplexes and hotels as the case may be.

The new system will be introduced at Coimbatore later this evening and at Coonoor on Sunday.