Maharashtra traders' strike nudges up prices

Prices of essential commodities in the wholesale markets in Maharashtra have risen and are expected to rise further as traders have halted trade at 14 markets under the Agricultural Produce Markets Committee (APMC) from today, protesting the imposition of service tax.

Foodgrains, sugar, pulses, and oilseeds have seen a roughly a 2 per cent rise in the prices as a result of the halt of loading and unloading of goods by traders.

The indefinite strike was called by the Maharashtra Foodgrains Dealers Association and the Poona Merchants Chamber from today.

The strike is supported by joined the Grain, Rice and Oilseeds Merchants Association (GROMA) which announced its agitation a day earlier over the service tax on gross freight charges levied on traders instead of goods transport operators.

Mohan Gurnani, president of the Federation of Associations of Maharashtra (FAM) that is also supporting the strike, said, "FAM has already met the state government which will make a representation on this to the Centre. Hopefully the issue is resolved soon."

He said states including Gujarat and Chattisgarh have already decided to join in.

According to Ashok Kiri, honourary secretary, GROMA, the issue would have to be settled in the next few days or supplies would run short at markets.

On December 3, 2004, the central government issued a notification whereby the service tax of 10 per cent in addition to the 2 per cent education cess imposed on the service provider (transport operators) would shift from January 1 2005 to the traders.

This move came after transport operators refused to pay.