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Our Bureau

Kochi , Feb. 14

THE Kerala Chamber of Commerce and Industry has expressed concern over the decision of the Union Government to debar courier companies from delivering letters weighing less than 500 gm.

The move of the postal department to ban courier companies from handling letters less than 500 gm will bring a death blow not only to the Rs 5,000-crore courier industry but to nearly 50,000 people employed with the industry, Mr John K. Paul, President of the Chamber said.

Imposing restrictions after the doors are opened to private sector is against the principles of natural justice and would put the business community in a highly disadvantageous position, he said, adding that the aim of the postal department is to safeguard it from competition.

The move is against the spirit of free market and enterprise. It would simultaneously give room for a monopolistic service, as the decision would cut off the choice of customers to choose the best service available to them, he said.

He pointed out that the Government had opened up private participation in providing major services such as telecommunication sector, television channels and postal services.

On account of liberalisation policies, a large number of private entrepreneurs have come forward to establish courier network.

The entrepreneurs made huge basic investments in this sector including expenditure for advertisements even by taking loans at exorbitant interest rates and had worked hard to establish their business. Instead of imposing such unfair practices, the postal department should develop efficient marketing strategies to cope up with the competition.

The Chamber also urged the Government not to implement any decision restricting the courier companies to carry on their business.

More Stories on : Industry Associations | Supply Chain Management | Kerala

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