The Hindu : Business : Kallai timber merchants call for a better deal

Online edition of India's National Newspaper
Thursday, Sep 07, 2006

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Kallai timber merchants call for a better deal

Staff Reporter

Seek meeting with Forest Department officials

KOZHIKODE: The Kozhikode Timber Merchants' Association says that a meeting of Forest Department officials and merchants' representatives, in the presence of the Minister for Forests, is not being held, though, for the last three decades, it has been demanding the talks to discuss problems of wood traders at Kallai.

The officials are scuttling convening of the meeting, according to timber merchants. Timber trade along the Kallai river, which has got worldwide attention, is in the doldrums, they say.

P.V. Lakshmanan, general secretary the association, say that though the Government has been declaring that tax need to be paid only on the difference between the cost price and the sale price, the consumer pays it on the gross profit taken by all dealers in the supply chain. That means, when a customer makes a purchase for Rs. 3.33 lakh, he or she has to pay Rs. 41,625 as tax under the Kerala Value Added Tax Act.

The timber merchants allege that the Forest Department officials are harassing them, forcing them to leave the trade. The officials are demanding affidavits from sawmill owners, declaring the exact place of stocking timber. This is difficult for the merchants, especially those at Kallai, as they stock timber not in one place, but at many spots on the riverbank.

They demand a reduction in the registration fees of Rs. 5,000 levied for five years. Otherwise, Rs. 500 should be collected every year. This will prompt more merchants to apply for registration. "Easing the rules will make more and more persons join this trade. The timber trade will provide employment to a lot of people without the Government making any investment.

Mr. Lakshmanan says that with the development of the Beypore port, more and more loads of timber can be transported to far-off places, such as Mumbai, through `urus' (traditional vessels), which will be cost-effective than transporting through road.

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