Southern States - Tamil Nadu   

Licensing goes for paddy, rice trade

By S.Vydhianathan

CHENNAI MAY 2. In a significant move, the State Government has withdrawn the licensing system for paddy and rice trade. Hereafter, no licence will be required for carrying on the trade.

Till now, traders had to pay Rs. 4000 as licence fee and a renewal fee of Rs. 300 once in three years for continuing the business. Now the abolition of the licence system will enable anyone to carry on the trade. One can freely buy, stock, transport and sell any quantity of paddy and rice without any licence.

The government decision followed the February 2002 Centre's order, announcing withdrawal of the licensing procedure. The State Government, after studying the possible implications of the order for over a year, has now announced the withdrawal of the licensing system.

`Momentous move'

Describing the decision as momentous, wholesale merchants here said it would allow free movement of rice and paddy within the State as well as from other parts of the country. Earlier, though they were free to transport the commodity from other States, they had to maintain a record. Maintenance of the stock position was a major irritant to millowners, having to keep books for paddy purchased within the State and from other States.

The government decision would help even small traders build up stocks whenever the market was flush with rice and paddy. Earlier they were not able to stock heavily for fear of harassment by officials.

The decision would also help to rationalise rice price, enabling traders to move stocks from other States whenever there was a scarcity in the market. It would also help them move stocks to other States whenever the price was poor here.

The Federation of Tamil Nadu Rice Mill Owners and Paddy - Rice Merchants Associations, welcoming the government decision, said it would benefit all sections, right from traders to consumers.

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