Maharashtra suspends mkt fee to control veggie prices

PUNE: Rising vegetable prices have forced the Maharashtra government to suspend the market fee and supervision costs involved in the buying and selling of vegetables at mandis for the next two months.

With state Assembly elections due in October, it had become essential for the government to step in to check the spiralling prices of essential food items.

���The prices of vegetables have increased due to deficient rainfall and the resultant loss of vegetable crops. Availability of vegetables is far short of demand,��� according to the order suspending the market charges from August 20 to October 20, 2009.

���Hence no market fee will be charged on buying and selling of vegetables by farmers, farmers��� groups and societies and the retail sellers,��� the order adds.

The Agriculture Produce Marketing Committees (APMCs) charge Re 1 per Rs 100 of the agriculture commodities sold and bought and five paise as the supervision cost. Both these levies stand suspended for the next two months.

ET had reported last week about the steep rise in vegetable prices across the state. In many cases, prices have more than doubled.

���We found that though the increase in the wholesale prices of vegetables was not so high, the retail prices had increased considerably. We hope this decision will help in controlling the price hike,��� said Maharashtra State Agricultural and Marketing Board (MSAMB) managing director Sheshrao Sangale.

This will allow buyers and sellers to transact outside the mandis, they will not have to pay for charges like hamali (porterage), tolai (loading and unloading) etc, which accounts for about 20% of the cost of the commodity. This saving is expected to be passed on to consumers and help cool prices.