Telangana government's Rs 30 lakh deposit norm stuns agricultural traders

Traders at the Enumamula agricultural market yard are up in arms against GO No.58 issued by the state government purported to safeguard the interest of farmers.

Published: 22nd February 2018 04:22 AM  |   Last Updated: 22nd February 2018 04:22 AM   |  A+A-

Image for representational purpose only

Express News Service

WARANGAL: Traders at the Enumamula agricultural market yard are up in arms against GO No.58 issued by the state government purported to safeguard the interest of farmers. Sources said traders across the state were planning to launch an agitation against the GO.  

As per the GO, all the licensed traders have to deposit Rs 10 lakh as surety in banks for trading on the market yard. The traders claim that the GO was against the interest of the traders as it would allow only big traders to carry out business on the market yard, and over 90 per cent of small traders would be out of business.  

Warangal Chamber of Commerce president K Pentaiah said the state government, without going into the issue and without consulting traders, had issued the GO, thereby creating chaos in the trading community. As per the GO, a trader has to deposit Rs 10 lakh for securing market licence, Rs 10 lakh for godown and Rs 10 lakh for ginning licence. On the whole, a trader has to deposit Rs 30 lakh to get a licence for all the three which is too expensive, he stated. “If we follow the new GO almost 90 per cent of the traders would be out of business as they are not in a position to deposit such a huge amount,” he said.

Pentaiah suggested that the government should collect a deposit of Rs 50,000 from traders doing business below Rs 5 crore and Rs 1 lakh from those doing business above Rs 5 crore.He said there are many people who are carrying out business using other peoples licences and they would be thrown out of business if the GO is implemented. “These people do very little business and if the licence amount was increased they have to leave the business,” he said.

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