The order styled as `Solvent, Raffinate and Slop (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order 2000 was issued on June 5,2000. Accordingly, "no person shall either acquire, store or sell solvents without a licence issued by the state govrnment or the district magistrate or any other officer authorised by the Central or the state government."

Further, the order said no person shall either use or help in any manner the use of solvents, except motor spirit and high speed disel in any automobile.Following the issue of this notification, solvent prices in Mumbai have jumped by around 10 per cent in just one week. Tradrers say, all the above solvents were traded at around Rs 23 per litre (excluding taxes and duties) As the traders refuse to deal in these products without the valid clearances from the government, trade in solvents is likely to be pushed underground, traders say, where the prices could be high.

"Prices will now be traded in around Rs 27-30 in this week" said one of the leading sovlent merchant, "and will remain high till clarification is available from the petroleum ministry.

Traders say, coupled with low off take of solvent in the market this problem has created chaos among the merchnats and dealers.

Solvents comprise of propane, benzyne, toulene, xylene and can be single hydrocarbon components used in the manufacture of cross section of products like pharmacueticals, dyestuff, intermediates and paints among others. The above order has apparently been issued to check the use of solvents in adulteration of petrol, high spirit diesel etc.

Chemical traders say by issuing this order, the authorities have included the entire range of solvents instead of addressing the issue of adulteration of fuel with the cheaper products. The Chemical & Alkali Merchant`s Association (CAMA) has opposed for this notification that they will not take licence from government authority since they have been registered with the excise, income tax and other authorities. The latest order forces the chemical traders to take one more licence from the state government.

Further CAMA alleges that the above order is inconsistent with current times of libralised economy, where on the one hand the government is lifting the control over trade to develop in open air and on the other hand has brought solvents under the essential commodity act.

According to leading chemical trader Shashikant Sayar, "the issued order would be an impediment for the manufacturing of bulk drugs, pharmaceuticals and fullfilling the export commitments and would bring inspector raj. It will create more hardships to small dealers, merchants and SSI units.

"These and other related issues have collectively contributed to force more than around 25,000 small and big merchants, traders, dealers and several SSI of this chemical units in the country either to down shutters or operate at substantially low capacity utilisation till the ministry clarifies various related issues.