According to office bearers of the Federation of Associations of Maharashtra (Fam), there was an overwhelming response to the token bandh. Traders in the bullion market and other retailers, including hoteliers and pan beedi shops, observed a bandh in Mumbai and other parts of the state in support of the call given by the federation to protest against the hike in sales tax, octroi, harrasment by government officers, and revenue-collection norms of the state government.

The demands include repeal of obnoxious sales tax amendments and hike in sales tax rates, withdrawal of turnover tax and surcharge on gross sales tax, withdrawal of stamp duty on imports levied in the state, withdrawal of increase in profession tax, abolition of octroi from all municipal corporation areas, and withdrawal of hike inregistration and licence fees under the Shops & Establishments Act and Trade Refuse Act.

According to Gold Club chairman Nirmal Zaveri, the state's policies have adversely affected the gold jewellery business. Due to the inordinate high taxes, Mumbai has lost its lustre as India's premier gold-trading centre.

According to Fam honorary treasurer Chimanlal Mehta, all the wholesale commodity markets, including bulllion, sugar, metals, oils, cotton, spices and others situated at Navi Mumbai, were closed today.

However, few traders operated their business through mobile and tele-fax., There was no physical goods delivery to customers, as local transport operators and operators of handcarts and bullock carts refused to deliver. There was also heavy police security in the market areas, a leading trader said. Fam secretary SG Joshi said the association was interacting with the state government for the last two years on several issues, including sales tax, octroi, harrasment by government officers, professionaltax and others, but there had been no positive response.

Joshi added that the government had appointed a committee to submit a report on their demands within a month, but by the time the it comes out with its reports, the election code of conduct will be in place and the government will not not be able to do anything.

Describing the strike as traders' demand day, a Fam spokesman said it was necessary to show widespread dissatisfaction to the government's apathy towards their demands.

"We are prepared to wait till the end of the Kargil crisis. If our problems are not solved after that, we might resort to an indefinite bandh," he added.