Traders at the Agriculture Produce Market Committee (APMC) mandis across Karnataka will observe one-day bandh on Monday to protest the State Government’s recent move to increase the market user cess from 0.35 per cent to 1 per cent of the transaction value.

Faced with a shortfall in resources to maintain the APMC market yards, the Karnataka Government had increased the user cess to 1 per cent from 0.35 per cent effective December 15. Earlier, implementing the agri-marketing reforms introduced by the Centre through an ordinance, Karnataka had reduced the market cess to 0.35 per cent from 1.5 per cent in July.

Seeking a level playing field, Shankaranna Munavalli, former president of the Karnataka Chamber of Commerce, Hubballi said there should be uniformity in application of the cess for traders operating within and outside the purview of APMC market yards. The increase in user fee would make the trade unattractive for buyers coming to APMCs.

“APMCs will stage a bandh on Monday to protest the hike in market cess. A meeting has been called on December 23 in Bengaluru to chart the future course of action,” Munavalli said adding that the increase in market cess would make the APMC trading unattractive for buyers.