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Kerala traders agitated at govt's backing to HLL

Traders in Kerala have called for a 48-hour closure of all shops from September 26, and held state-wide demonstrations on Thursday to protest against the state government's help to Hindustan Lever Limited in its dispute with the traders.

The traders association have been boycotting HLL products since June 1, demanding a hike in their margins. The association has accused the state government of trying to torpedo their agitation by joining hands with the multinational.

The traders agitation, spearheaded by the powerful Kerala Vyapari Vyavasayi Ekopana Samithi, has so far proven ineffective after HLL managed to continue selling its products through more than 400 retail outlets of the Kerala state civil supplies corporation and the state cooperatives department.

Association President T Nasiruddeen pointed to the paradox of a Left government rescuing HLL in complete disregard of its ideological opposition to multinationals. He alleged that the co-operative department had accepted HLL sponsorships during the opening of its 'Neethi Stores' for marketing the company's products. Naziruddeen urged the government to convene a meeting of the traders and the HLL management to resolve the strike.

The traders association began the strike after HLL rejected its demand for an increase in their margins from 4.5 per cent to 8.75 per cent. The association had also written similar letters to other multinational companies marketing their products in the state, all of whom responded favourably. HLL maintained that the traders demand was unacceptable as the margin offered by the company matched those of other companies. Moreover, HLL said it had a uniform margin rate throughout India and it was not possible to consider a separate rate for one state like Kerala.

An HLL spokesman said any further increase in the margin will add to the consumers's burden, something the company had no intention of doing. It has planned to open exclusive outlets for its products in all the major centres of the state if the traders persist with the boycott. Two such outlets have already opened in Kochi and more are in the offing. The spokesman said that several applications have been received for opening such outlets in different parts of the state.

The state government, which had convened a meeting of the parties concerned on July 20, has kept silent after it failed to find a solution. The Opposition parties have deplored the government's decision to market HLL products through its outlets.

A Kerala Congress-M leader said the government was trying to suppress the agitation by using the police. He urged the government to hold immediate discussions to end the three-month-old strike.

However, several consumer organisations in the state have criticised the traders association for depriving consumers from purchasing the goods they want by using their collective force.

EARLIER REPORT: The traders war against HLL intensifies