Thousands of visitors are expected to head for Petersfield on Saturday, May 31 and Sunday, June 1 for the inaugural festival to enjoy local produce from more than 100 stallholders.
But a request by organisers Petersfield Events that East Hampshire District Council foregoes car park charges on the Sunday has been rejected – and has led to accusations that the council does not do enough to help support town traders.
The council counters that it regularly works with businesses around the district but cannot waive parking charges for all town events.
Philip Haines, of Petersfield Events, said: "We took to the council the idea of waiving car parking charges because we felt it would be of benefit to the town and bring more people into the town."
Mr Haines said he would like to see the council do more to support volunteer-run events such as the festival. He said: "I wouldn't be surprised if 2,000-3,000 people turned up, maybe more.
"If you're trying to encourage people into the town it just seems a bit unhelpful to impose car parking charges.
"We're very disappointed that they're not waiving the charges but in fact are making a profit from the event. We have to pay for licences, litter collections and also car parking."
The Sunday charges were controversially brought in on April 1 but the district council has already waived the fees for the Petersfield Town versus Chelsea Old Boys football match on April 27.
Steve Bradley, communications officer at East Hampshire District Council, refuted the claims that the council was not helping the event or businesses generally.
"Will people wanting to come to a food festival really be put off by parking charges?" he said. "We ran free parking on certain days leading up to Christmas for three years and it did not make that much difference.
"What benefit it would bring to the community is doubtful. I'm sure there are more practical things we can do."
He emphasised that EHDC works alongside many local businesses and cited examples such as the rural businesses scheme which supports shops that have lost their post office, business support grants, offering direct assistance to small traders and promoting visitor attractions in the district.
"We do a lot of work bringing a direct benefit to businesses in Petersfield, Alton and Whitehill and will continue to do so," he said.
Town Mayor Paul Molloy, also a member of Petersfield Tomorrow, said: "I wish there was more co-operation between the district council and those trying to do something for the town.
"Sometimes I understand there are complaints that they are not that supportive."