The Hindu : Tamil Nadu News : Match industry opposes move to sell wax through SIDCO

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Wednesday, Aug 27, 2008
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Tamil Nadu

Tamil Nadu

Match industry opposes move to sell wax through SIDCO

Staff Reporter

“It will lead to black marketing of the important raw material”

SIVAKASI: The match industry has urged Chennai Petroleum Corporation Limited (CPCL) to give up its move to sell wax meant for match units through Small Industries Development Corporation (SIDCO).

Talking to reporters here on Tuesday, the president of All India Chamber of Match Industries, Sriram Ashok, recalled the bitter experience the match industry had when a similar distribution procedure involving SIDCO was followed years ago.

“We fear that reverting to SIDCO will lead to hoarding and black marketing of wax which is an important raw material for the match industry,” he said.

The role of middleman was unwanted since direct dealing between the CPCL and match industry was smooth-going and had well laid out and fool-proof procedures.

Stating that the match units were willing to wait for days for the wax to arrive after paying the money in advance to CPCL, Mr. Ashok said that SIDCO, having a role of middleman, would always divert the wax to “traders” leading to hoarding and black marketing. J. Devadoss, secretary of South India Match Manufacturers’ Association, said that SIDCO had its godowns in parts of the State where there was no match unit and “traders” there would be permitted to buy wax only to sell back to the industry for a premium.

T. Kathirvel, Congress president of Tutitocorin district, who was speaking on behalf of party functionaries from Tirunelveli, Tuticorin and Virudhunagar districts, said that Tamil Nadu Congress president, K.V. Thangkabaalu, had promised to take up the issue with the Union Petroleum Ministry to find an amicable solution.

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