Traders across Jharkhand have stopped lifting foodgrains coming from nearby states in protest against imposition of VAT on branded food items.
The state government has decided to impose 5% value added tax (VAT) on branded food items.
Earlier, the state government had freed VAT from unbranded food items like rice, wheat, potatoes, onions and other essential commodities such as bed-sheets, towels and blankets.
Meanwhile.wholesalers across the state have extended support to the ongoing agitation being carried out by several trade bodies in the state.
It is learnt from some traders that there are enough stock of food items to sustain for a fortnight. But if the agitation continues there may be a temporary crisis of food items and increase in prices cannot be ruled out.
The Jharkhand government has implemented the policy that was announced in the last budget session of the Assembly to make essential commodities like paddy, rice, wheat and flour free from VAT.The cabinet presided by chief minister Arjun Munda gave the seal on the policy recently.