Electronic bidding or shortly e-auction system of tea has been developed with wide connectivity of computer networks. The world’s first electronic auction of tea organised jointly by Calcutta Tea Traders Association and Tea Board was held at Nilhat house which is the headquarters of the country’s largest tea auction firm J. Thomas & Co. on 19th November, 2008. The new auction system is being used now by all the six auction centres (Kolkata, Siliguri, Guwahati, Cochin, Coimbatore and Coonoor).The various users like manufacturers,Warehouses, Auctioneers and buyers have been provided with access to various functionalities of the sysytem. The auction centres are entitled to carry out functions like registration, incorporation of charges in policy and information maintenance. The e-Auction system integrates the process starting from creation of invoices till the delivery of tea from the warehouses, enabling better control and avoiding duplication of works thus reducing time.This electronic platform will bring more transparency in auction system so that tea producers get a fair price.