The National Textile Corporation (NTC) has begun e-auction of yarn. The decision to adopt e-auctions has been taken to give maximum opportunity to dealers for lifting of NTC stock and thereby reduce inventory and improve cash flow. The transparent electronic bidding process is also expected to result in better price discovery of the yarn stock.

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. In future, e-auction shall be extended to the open market as well but after registering the dealers.

Base prices will be fixed every Wednesday and the e-auction will take place on Thursday. The sale shall be completed and the material will be allotted as per the highest bid and quantity, as the case may be. There may be more than one winner for one count of yarn.

Currently, yarn is sold through dealers, registered mill-wise with NTC as per procedure. Prices are fixed every Wednesday and the yarn is sold to dealers at certain rates for the entire week. At present, four to six dealers are registered with each mill. If the material is not sold, it remains unsold and the stock piles up.

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