Traders boycott turmeric, mirchi purchases

The sale of turmeric and mirchi came to a standstill at all government market yards in Andhra Pradesh on Monday as traders and commercial tax officials refused to budge on the payment of 4 per cent tax on 'export turnover' for the two commercial crops by the former.

While traders stopped turmeric purchases at the Guntur, Nizamabad, Cuddapah, Warangal, and Ksamudram market yards, their counterparts boycotted purchases at major mirchi centres at Guntur, Warangal and Khammam. Buyers at the Duggirala turmeric market yard, the biggest sale point in Andhra Pradesh, began the boycott a week ago.

Presenting the traders' version, Shyam Maheshwari, president of the Duggirala Turmeric and General Merchants' Association, criticised the commercial tax (CT) officials for issuing coercing notices to buyers, demanding payment of 4 per cent tax on export turnover with retrospective effect from 1997-98.

The officials threatened about 70 traders and 5 export dealers at Duggirala with cancelling their licences. The tax had been non-existent during the last three decades.