1-day strike in agri markets to protest ‘outdated’ APMC Act, double taxation

Trader associations have long complained that many market committees collect fees despite providing inadequate or no facilities, leaving both traders and consumers to pay for infrastructure that does not exist

NAVI MUMBAI: Agricultural markets across Maharashtra are set to remain shut on Friday as thousands of traders have launched a one-day token strike, demanding sweeping reforms to what they describe as an outdated and burdensome agricultural trade regime. Called by the Maharashtra Rajya Kruti Samiti, a coalition of five apex trading organisations, the bandh is expected to halt operations in every major market yard from Kolhapur and Pune to Navi Mumbai, disrupting the daily movement of food grains, oilseeds, staples and other agricultural produce.

Navi Mumbai, India - March 30, 2025:40,000 boxes of mangoes have arrived at APMC on Gudi Padwa, ready to be exported, in Vashi, Navi Mumbai, India, on Sunday, March 30, 2025. (Photo by Bachchan Kumar/ Hindustan Times) (HT PHOTO)

At the core of the protest is the Agricultural Produce Marketing Committee (APMC) Act of 1963, which, traders argue, has become obsolete in an era of rapid changes in storage, logistics, packaging and retail systems. Their principal grievance is the continuation of the APMC market cess even after the rollout of the Goods and Services Tax (GST). They maintain that the twin levies amount to double taxation, distorting prices and placing an unfair burden on both traders and farmers.

Trader associations have long complained that many market committees collect fees despite providing inadequate or no facilities, leaving both traders and consumers to pay for infrastructure that does not exist. They are also opposing what they describe as excessive punitive enforcement under the current regulations—a regime of inspections, penalties and procedural hurdles that they claim discourages participation in the formal mandi system.

The demands of the traders include the complete repeal of the APMC cess on commodities covered under GST, online renewal of all APMC licences, removal of overlapping food-safety provisions and a comprehensive overhaul of the APMC Act in consultation with trade bodies before the state moves ahead with any national-level agricultural market reforms.

CAMIT chairman Mohan Gurnani, speaking at a press conference on Wednesday, said that the bandh had become unavoidable. “The present mix of GST plus APMC cess is unfair and pushes up consumer prices unnecessarily,” he said.

Gurnani noted that the APMC system had lost relevance over the decades, with only 20% to 25% per cent of trade now occurring inside APMC marketplaces as traders increasingly bypassed them to avoid regulatory complications. “When the APMC Act was first enacted, supply was limited and demand high, ensuring that farmers received good prices,” he said. “Now the situation has reversed with high supply and low demand. When cess is levied, costs rise and farmers receive less. The Act is now hurting farmers instead of helping them.”

Gurnani warned that Friday’s shutdown was only the first step. “We are hopeful that the government will call us to discuss the issue and make the requisite changes in the Act,” he said. “If our demands are ignored, stronger action will follow, as traders are ready for an indefinite strike.”