Date:27/11/2003 URL: http://www.thehindu.com/2003/11/27/stories/2003112705730400.htm

Southern States - Andhra Pradesh

Govt. urged to rein in rice millers

By Our Special Correspondent

VIJAYAWADA NOV. 26. The rice merchants association has asked the Government to bar rice millers from indulging in mobile sale of rice through vans in the retail market evading tax and see that they supply rice to consumers only through traders.

The rice merchants also appealed to the millers to desist from "vicious campaign'' against them.

Speaking to newspersons here today, the president and the secretary of the rice merchants association -- Somisetti Venkateswarlu and Kandukuri Venkatasubbaiah -- demanded that the Government carve out Vijayawada as a special consumer zone and see that the millers sell rice only to merchants. The merchants should be permitted to export surplus rice after meeting the demand of consumers in the local market.

They pointed out that the association had earlier prevailed on the Government to lift curbs on sale and transport of rice. It also got multi-point tax on rice waived. Following regularisation of rice distribution, the rice merchants almost lost their business. When the association represented the matter to the Government, it held negotiations with the millers and asked them to supply rice only to merchants who were required to sell rice at the fixed price. But the millers had been defying the order for the last eight years and acting in "a vindictive manner'' against merchants. The millers are now selling rice directly to consumers through mobile counters robbing the merchants of their business.

Taking advantage of irregularities committed by a few merchants, the millers were trying to run down the whole community of rice merchants and painting them black in a most unjustifiable manner. It was in fact the rice millers who were indulging "in irregularities.''

They were issuing bills in benami names and selling rice in the retail market engaging vans and evading taxes to the Government. The sale of rice through Rythu bazars was nothing but this, they averred. The rice merchants wanted the Government to curb this retail selling by millers and help them do their business without any hindrance. The merchants accused officials of acting hand in glove with millers and harming their interests.