GUNTUR: In what could be another jolt to the India's trade relations with China, a chilli importer from the neighbouring country has lodged a cheating complaint against a local trader with the Guntur police. The importer alleged that the merchant based in Guntur had caused him massive loss to his business and reputation.
According to information, Gi Yung Tai Yongkim came all the way from China and approached the Guntur police on Saturday. He is reported to have come to India after having failed to broker a compensation deal with the management of the firm which allegedly sent inferior quality stocks. Sources said an exporting firm owned by one Polineni Madhubabu of Pranya Condiments from Guntur had shipped about 30 tonnes of chilli to Yongkim following approaval of his samples in China.
However, the chillies imported by the firm of Kim did not match the samples and were rejected by the food safety authorities in his country. Shocked by the rejection of the stock, the Chinese trader demanded compensation from the Guntur merchant. He claimed that he had suffered a loss of Rs 4 crore through the transaction. In addition, he would be liable to face criminal charges in his country for getting such stocks imported from India. Kim alleged that the stocks sent by Madhubabu were not of the same quality as were the samples. However, the exporter refused the claims of the Chinese trader.
After Madhubabu's vehement refusal to pay compensation , Kim rushed to Guntur and lodged a complaint with Arundelpet police on Saturday . With the issue involving international trade agreements , police said that they would register a case after taking legal opinion. The complaint of Chinese trader has created ripples in the trade circles as AP is considered to be the biggest exporter of chilli to China during the current year. Merchants fear that such a complaint might hit the reputation of Indian merchants across the globe and derail the entire trade relations with the neighbour. In fact, China barred imports from India for several decades following export of inferior quality tobacco about three decades ago. China is not allowing tobacco imports from India even now. However, it imports some other agriculture products including chilli that too after following stringent norms. Inspector Alahari Srinivasa Rao confirmed the receipt of the complaint from Chinese merchant.
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