Draconian and deceitful trade practices continue; ‘Mudalali mafia’ gradually strangling fruit and vegetable industry

By Steve A. Morrell (The Island, 2009-08-16)

President, Lanka Fruit and Vegetable Producers, Processors & Exporters Association, (LFVPP&EA) Ismeth G. Mohamed addressing the 28th annual general meeting of the Association said last week that producers at grassroot level are held to draconian and deceitful trade practices through dubious subterfuge to snare small time producers and deprive them of fair trade for their produce.

He pointedly said there are sub trade wholesellers who snared small time producers, whom he referred to as the ‘Mudalali Mafia’, who indirectly had iron control on the small holder community through money lending and consequential purchase of produce at extremely low prices.

The necessary evil who is the middleman exploits small-timers who have no redress or access to equitable trade and are invariably cheated. They have, arguably, formed sinister cartel applications to inveigle such growers, who through ignorance or effective savvy are lured to accept vagaries of these middlemen, he said.

End user consumers meanwhile pay dearly for produce available on retail shelves although in situ purchases present a completely different trade image. Complaints have been made to the President. However, lower rung politicians say there is no incidence of these surreptitious transactions affecting the small holder base. This, Mohamed implied, was a tongue-in-cheek assessment in reality, which in real terms was that there was cheating and thuggery continuing unchecked.

He suggested that banks be more expansive extending credit to stimulate the industry rather than enforce outmoded collateral procedures which discourage rather than encourage small holders. Bank’s responsiveness is lacking, he complained. Rural credit schemes are, in this context, absent, which give rise to the ‘mafia’.

If it is that solutions should be considered it is now opportune that agricultural governance be more a workable option and not be shunned to the back burner.

More to the point, he said, there should be an active link between farmer and consumer.

With eradication of terrorism and its complementary postscript applications, Mohamed said it is now time an economic stimulus package be formulated and implemented quickly.

He made the point that relaxation and entry to the airport should be a priority consideration for immediate implementation. This among others, there is a long list of ‘Dos’ which, he said, should form an holistic relief package sorely needed now, than later.

Posted in Agriculture , fruit and vegetable exporters , Sri Lanka