Starting Wednesday, the Greater Chennai Corporation (GCC) and other local bodies in the State would allow traders to pay trade licence fee for one year or two or three years, instead of a mandated three years, as desired by the licensee.

Traders have been urging the State government to relax the rules, stating that they were unable to pay the fee for three years.

According to the Tamil Nadu Urban Local Bodies Act, local bodies, in February, began collecting trade licence fee for three years.

Traders protested, claiming that the rates were exorbitant.

Around 55,000 traders are yet to pay the trade licence fee. Of the 65,000-odd traders in the GCC’s 15 zones, fewer than 10,000 paid the fee in the last two months.

GCC officials said the renewal of trade licence for 55,000 traders was expected to be carried out before March 31.

Over 20% of the grocers and several other traders have already shut shop owing to challenging conditions.