Strike heat on dry fruit, spice prices

Bad news looms large for Delhi’s dry fruit and spice retailers as the traders of Khari Baoli — the city’s largest wholesale market for these products — are on an indefinite strike.

Bad news looms large for Delhi’s dry fruit and spice retailers as the traders of Khari Baoli — the city’s largest wholesale market for these products — are on an indefinite strike.

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The traders have been agitating and threatening to prolong their strike that was prompted by an increase of the penalty tax by the Delhi government’s value-added tax (VAT) department.

“Earlier, we would pay 5% as penalty tax on the maximum retail price (MRP). The VAT department increased it to 40% in June. This is absolutely ridiculous. It’s something that we can't afford,” said Kamal Longani, a trader at Khari Baoli.

The traders claimed that numerous meetings on the matter had remained largely inconclusive.

“The strike will continue till they stop harassing traders. If this continues, there is bound to be a shortage in commodities in other retail markets too,” Longani added.

With the festival season on the horizon, consumers could get a raw deal. Retailers feel that a price rise is inevitable before Raksha Bandhan on August 2.

“We get requests to make customised gift packs, which include popular dry fruits such as cashew nuts and almonds. If this situation persists, we will be forced to charge more. For instance, if the smallest pack cost Rs. 200, then we may increase the price by Rs. 50 since we end up paying more to the wholesalers,” said Bansi Kumar, a retailer in Kalkaji.