Maharashtra – Agricultural markets across Maharashtra have ground to a halt on Friday as thousands of traders participate in the APMC strike Maharashtra, demanding comprehensive reforms to what they describe as an outdated and burdensome agricultural trade regime. The one-day token strike, organized by the Maharashtra Rajya Kruti Samiti, a coalition of five apex trading organizations, is expected to disrupt operations in every major market yard from Kolhapur and Pune to Navi Mumbai.
The APMC strike Maharashtra has been called to protest the continuation of the Agricultural Produce Marketing Committee Act of 1963, which traders argue has become obsolete in an era of rapid transformations in storage, logistics, packaging, and retail systems. The strike is set to halt the daily movement of food grains, oilseeds, staples, and other agricultural produce across the state.
Core Issue: Double Taxation Under APMC and GST
At the heart of the APMC strike Maharashtra lies the contentious issue of double taxation. Traders are protesting the continuation of APMC market cess even after the nationwide rollout of the Goods and Services Tax. The coalition maintains that these twin levies constitute double taxation, distorting market prices and placing an unfair financial burden on both traders and farmers.
The APMC strike Maharashtra highlights how the dual taxation system has created economic inefficiencies in agricultural trade. Traders argue that paying both GST and APMC cess increases operational costs, which ultimately get passed on to consumers through higher prices while simultaneously reducing the returns that farmers receive for their produce.
Inadequate Infrastructure Despite Fee Collection
A major grievance driving the APMC strike Maharashtra is the alleged collection of fees by market committees despite providing inadequate or no facilities. Trader associations have long complained that both traders and consumers are forced to pay for infrastructure that simply does not exist in many market yards across the state.
This disconnect between fee collection and facility provision has been a persistent complaint within the agricultural trading community. The APMC strike Maharashtra seeks to draw attention to this disparity and demand accountability from market committees that continue collecting fees without delivering corresponding services or infrastructure improvements.
Excessive Regulatory Burden and Enforcement
The APMC strike Maharashtra also protests what traders describe as excessive punitive enforcement under current regulations. They claim that a regime of inspections, penalties, and procedural hurdles discourages participation in the formal mandi system, pushing traders toward informal channels to avoid regulatory complications.
According to strike organizers, the APMC strike Maharashtra is necessary because the current system has become counterproductive. Instead of facilitating orderly agricultural trade, the regulatory framework has created obstacles that traders increasingly circumvent by operating outside APMC marketplaces.
Comprehensive List of Trader Demands
The APMC strike Maharashtra is backed by specific demands that traders want the government to address. These include the complete repeal of APMC cess on all commodities already covered under GST, eliminating the double taxation that currently exists. Traders are also demanding online renewal of all APMC licenses to reduce bureaucratic delays and corruption.
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Additionally, the APMC strike Maharashtra calls for the removal of overlapping food-safety provisions that create redundant compliance requirements. Most significantly, traders are demanding a comprehensive overhaul of the APMC Act in consultation with trade bodies before the state government proceeds with any national-level agricultural market reforms.
Declining Relevance of APMC System
CAMIT chairman Mohan Gurnani, speaking at a press conference, explained why the APMC strike Maharashtra had become unavoidable. “The present mix of GST plus APMC cess is unfair and pushes up consumer prices unnecessarily,” he stated, emphasizing the economic distortions caused by dual taxation.
Gurnani noted that the APMC system has lost significant relevance over the decades, with only 20 to 25 percent of agricultural trade now occurring inside APMC marketplaces. Traders increasingly bypass these regulated markets to avoid regulatory complications, undermining the very purpose of the APMC framework. This reality makes the APMC strike Maharashtra particularly significant as it reflects widespread dissatisfaction with the existing system.
Historical Context and Current Reality
When the APMC Act was first enacted in 1963, supply was limited and demand was high, ensuring that farmers received good prices for their produce. However, Gurnani explained during discussions about the APMC strike Maharashtra, the situation has completely reversed. Today, high supply meets low demand, and when cess is levied on top of this imbalance, costs rise while farmers receive less for their produce.
“The Act is now hurting farmers instead of helping them,” Gurnani stated, highlighting the paradox that the APMC strike Maharashtra seeks to address. What was once designed as farmer protection has become a burden that reduces their earnings.
Warning of Escalated Action
Gurnani issued a stern warning that Friday’s APMC strike Maharashtra represents only the first step in a potentially extended campaign. “We are hopeful that the government will call us to discuss the issue and make the requisite changes in the Act,” he said, expressing willingness to negotiate.
However, he made clear that if trader demands are ignored, stronger action will follow. “If our demands are ignored, stronger action will follow, as traders are ready for an indefinite strike,” Gurnani warned, indicating that the current APMC strike Maharashtra could expand into a prolonged shutdown.
Statewide Impact and Market Disruption
The APMC strike Maharashtra is expected to cause significant disruption across all major agricultural markets in the state. From Kolhapur in western Maharashtra to Pune and Navi Mumbai in the central and coastal regions, the coordinated shutdown demonstrates the unity and determination of the trading community to secure reforms.
The success of the APMC strike Maharashtra in achieving complete market closure across the state underscores the seriousness with which traders view these issues and their readiness to sacrifice immediate business interests for long-term systemic reforms.
