I would like to draw your attention about a new trade practice adopted by paper mills. They select a dealer or two and giving him a discount of Rs.1/= or in some cases up to 1.50 along with a extended credit period and told rest of the dealers much higher rates then these dealers. Their submission in this regard is that they lift higher quantity then normally dealers do. Some mill offer trip to Singapore / abroad to these dealers as extra advantage. Even some mills do it in some very personal relationship.

Today mill owners are happy that their decision is very good but they are not understanding the fact that:

1. Small & medium dealers are ruined slowly by these dealers in a span of time.


2. After some time these big dealers will dictate mills. They pay as per their desire, they give rate as their wish, even they intercept mill's production or quality matters.


3. The fore most factor is that these dealers generally sold the material by their salesman & not checking the credit worthiness of most of the buyers, they make outstanding in crores to a single party or even giving material to a defaulter, because they have to lift huge quantity . When their money in not coming back in time or fully, how will they give committed payment to the mill.

Mills should think twice or even thrice, because time will not give chance to think again.