AMMAA markets to sell goods at half price

AMMAA markets, to be launched soon in Chennai, will sell products at 50 per cent of the retail price.

The products will range from groceries to vegetables, to fishing nets and earthen pots, tea cups and talcum powder.

Government officials have finalised a list of 1,256 products to be sold at 15 different locations in the first phase. The Chennai Corporation has already identified six locations on Poonamallee High Road in Arumbakkam, Saligramam, Arcot Road in Valasaravakkam, Rajiv Gandhi Salai near Tidel Park, Turnbulls Road in Nandanam and Mint for setting up the markets. A one-month trial run will begin shortly.

According to a preliminary study by the Corporation, residents of the Chennai Metropolitan Area spend Rs.10950 crore a year on procurement of food products. Sale of other products, including cosmetics, clothing, kitchen utensil and furniture, is estimated at Rs.3,600 crore a year. Most of such products are sold at 200 per cent of the cost of production because of the intermediaries, the study says.

At least 41 government departments and Corporations in the State will put in place a system at the district level to procure manufactured products for the AMMAA markets. The Corporation would take the products directly from manufacturer to buyer, bypassing at least five stages of middlemen, officials claimed.

Authorised farmers from 16,564 villages in the State are likely to get free bus passes to take the farm products to AMMAA markets. Farmers and village industries will be the major beneficiaries of the scheme. Products to be sold here are also likely to get commercial tax relaxation.