Pune: In a recent move, the Maharashtra government has decided to lower the cess charged by market committees on transactions involving agricultural produce.

The cess, which was earlier between 75 paise and ₹1 for every ₹100, will now be reduced to 25-50 paise. This decision has been well-received by traders who had long been demanding a reduction, but it has raised concerns about the financial sustainability of the state’s market committees.

Traders’ associations, including the Maharashtra State Traders' Action Committee, had been pushing for this change for years, holding several protests in the process.

Their main argument was that a lower cess would encourage more business within market committee premises, as many traders had moved their operations outside the regulated areas due to the higher cess. Now, they hope that this reduction will boost trade within the regulated market areas once again.

However, this change could result in a significant drop in the income of market committees, which rely heavily on the cess for revenue. For example, the Pune Agricultural Produce Market Committee currently earns ₹70 crore annually from cess collections, but this figure is expected to drop to ₹35 crore after the reduction.

With operational expenses nearing ₹40 crore, questions are being raised about how development work will be funded.

Some market committees are reportedly planning to challenge the government’s decision in court. Pune Market Committee Chairman Dilip Kalbhor expressed concern, stating that they may need to seek legal recourse if the Market Committee Association does not take action on this issue.

The decision to lower the cess came after a high-level meeting in Mumbai on August 26, 2024, where Deputy Chief Minister Devendra Fadnavis directed that a resolution be reached within a month.

The meeting was attended by representatives of traders’ organizations and government officials, including Minister Mangalprabhat Lodha and MLA Madhuri Misal.