Traders’ strike jacks up price of essentials

“We have decided to keep the market closed for this reason," said M Damani, president of Bombay Bullion Exchange, adding, “Earlier the said tax was imposed on transport operators but now the government has decided to impose this tax on traders.”

“The future course of action against the said tax will be decided shortly," said Manilal Mehta, a leading dealer.

FAM convener and Navi Mumbai Merchants Chamber (NMMC) president Mohan Gurnani said that the service tax on transporters will have a cascading effect, with the consumers being at the receiving end as they will have to ultimately bear the burden of the government’s decision to impose the tax.

He said that instead of bringing in more revenue to the government, the new tax will increase the state’s expenditure on account of maintenance of the tax collection system.

The President of the Dadar Bhajipala Vyapari Mandal, Vijaykumar Dalvi, expressed fears that while the prices of vegetables, which have already sky-rocketed due to the ongoing traders’ strike at Navi Mumbai, are likely to escalate further due to the untimely rains across the state. “The unseasonal rains in Nashik and other parts of the state have already resulted in the prices of onions and garlic shooting up. As of now, onions and green chillies are available at Rs 14 and Rs 30 per kg respectively, but if the rains continue, then it won’t be long before they escalate considerably,” Dalvi said.

Shopowners have decided not to buy commodities like sugar and coconuts from the APMC market. They feel "the cost of sugar is too high at Rs 2,000 to Rs 2,200 per 100 kilos.” Since no transportation was available, a retailer has to shell out Rs 500 to Rs 1,000 for a vehicle to get new stocks transported in the suburbs.

Stocks at the Sahakar Bazar and Apna Bazar co-operative stores too fell short of demand with the staff asking customers to buy some other things like toiletries along with sugar.

Sugar prices have reached a high of Rs 25 per kg. Government rationing shops too registered a no-stock situation with traders reportedly hoarding the various items. Said a shopkeeper from Borivli, “anticipating the transporters’ strike over the service tax issue, prices of sugar and other grains has gone up at least by ten per cent. The traders are also reasoning that due to no incoming stock by road transport and the political uncertainty in the country, the situation may worsen.”

Added S C Khambati, President of the Chemists and Druggists Association Mumbai said the association has "vehemently protested the improper and unreasonable levy of service tax, industries which depend solely on goods transport operators’ services.”