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Kerala traders down shutters in battle against Hindustan Lever

The ongoing row between Hindustan Lever and traders in Kerala reached a flashpoint when the latter closed their business establishments on Saturday to press their demand for the government's intervention to end the four-month-old strike.

For several weeks now, the traders have boycotted the consumer giant's products after HLL rejected their demand for higher trade margins. The traders are also irked with the government for selling the multinational's products through its retail outlets, and have threatened to intensify their stir.

The one-million strong Kerala Vyapari Vyavsayi Ekopana Samithi, which gave the call for the shops's closure in the state, said the state government's patronage to Hindustan Lever since June 1 had rendered their agitation ineffective.

The traders organisation president, Thiruvananthapuram unit, Sainuddin, threatened to intensify the agitation if the government continued to support the company. He told Rediff On The NeT that the strike was a success.

He alleged that the government was not mediating between the two sides because Hindustan Lever has been sponsoring various government programmes with the motive of selling its products through over 400 retail outlets run by the government-owned Civil Supplies Corporation and the Co-operative Department.

The Congress-led Opposition has backed the traders's demand for an increase in their margin from 4.5 per cent to 8.5 per cent.

Kerala Congress-M leader K M Mani urged the government to immediately convene a meeting of the representatives of Hindustan Lever and the traders to end the strike.

Hindustan Lever said it found it difficult to meet the demand as it has been following a uniform rate throughout the country. "If we offer a higher margin to traders in Kerala, a similar demand will emanate from other regions in the country. The hike in margins could be an additional burden to the consumers and that might lead to a reduction in the company's share in the market," an HLL spokesman told Rediff On The NeT. He claimed that the rate offered by HLL was comparable to the ones offered by other companies.

However, the Vyapari Vyavsayi Ekopana Samithi said the conditions in Kerala could not be compared with those prevailing in other states "since Kerala had its unique problems being located in the southern tip of the country."

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