Date:27/07/2004 URL: http://www.thehindubusinessline.com/2004/07/27/stories/2004072702750600.htm

Back Chamber calls for easing restrictive inter-State rules

Our Bureau

New Delhi , July 26

IN THE backdrop of uneven monsoons, the PHD Chamber of Commerce and Industry (PHDCCI) has called for "immediate easing of restrictive rules" that govern inter-State trade and movement of agriculture commodities.

According to the industry body, the policy regime pertaining to internal trade is particularly restrictive.

For instance, many of the restrictive control orders derive from the Essential Commodities Act (ECA), which regulates distribution of essential commodities across States. Even as the number of commodities under the ECA has been pruned, PHDCCI says that "a series of seemingly non-essential goods still retain the `essential' status and continue to face restrictions in inter-state trade".

Many States still put "formal and informal curbs" on movement of essential items despite agreeing to treat the entire country as one zone. For instance, the law enacted by the UP Government relating to essential commodities restricts inter-State movement of food grains. Similarly, Tamil Nadu, West Bengal, Andhra Pradesh and Jammu & Kashmir also continue to impose such restrictions, said PHDCCI.

Besides, stock holding limits are fixed for wheat and rice by the State Governments under licensing orders. While most north Indian States are not known to impose stocking limits on goods, the restriction on rice exists in Tamil Nadu, Andhra Pradesh and J & K, the chamber added. Significant restrictions are also known to exist on the trade of specific commodities.