TANFMAL calls to curb sale of flour made with PDS rice

MADURAI: Tamil Nadu Foodgrains Merchants Association Limited (TANFMAL), Madurai, has sought necessary action to prevent the sale of flour made of rice meant for Public Distribution System (PDS). Rice, which is distributed through fair price shops under the PDS scheme, is actually meant for people living below the poverty line. The PDS rice, which should reach the intended beneficiaries, is often smuggled and immediate steps were need to check this malpractice, said SVSS Velshankar, president, TANFMAL, Madurai, on Monday.

In the recent past, idli batter (wet) and rice flour production had gained popularity since their sale has turned out to be all day business on any city streets. While many commercial establishments, registered under the Goods and Service Tax (GST) Act, are conducting fair business, some were doing it without registering under the tax system. Because of this, genuine traders were not able to compete with the unregistered lot. Hence, authorities should implement new and strict measures to deal with all those who evade tax.

Those who carry out such illegal trade were involved in illegal purchase of rice grains supplied through the PDS. Moreover, they were also using electricity under domestic tariff instead of commercial tariff for production of idli batter (wet) and rice flour. While a unit of electricity under domestic tariff is Rs 4.50, it’s much higher and charged at Rs 10 per unit under commercial tariff, he said.

All these issues have been taken to the knowledge of J Radhakrishnan, Principal Secretary, Cooperation Food and Consumer Protection Department to protect the genuine traders under the tax code and also to Rajesh Lakhoni, Tamil Nadu Electricity Board, Chairman TANTRANSCO and Additional Chief Secretary for action, he said.