Indefinite Truckers’ Strike Called off After Government Assurance
Truckers demanded a reduction in central and state taxes by getting diesel under the GST.
The eight-day-old indefinite nationwide strike was called off by the All India Motor Transport Congress (AIMTC), after the government assured to look into their demands.
In a joint statement, the Road Transport and Highways Ministry and AIMTC said that the strike had been called off after a marathon meeting between the transporters and senior Road Transport and Highways Ministry officials on Friday.
Earlier on Wednesday, 25 July, the supply of essential products, household items and mobile phones had taken a hit, The Economic Times had reported.
Factories had been forced to either shut down or run twice as slow, as they are unable to receive the necessary raw materials. This had left several large firms worried, as retailers could now start running out of stock, if the strike continues, the report had added.
What Caused the Strike?
The strike was first called on Friday, 20 July, with the association’s main demand being the reduction in central and state taxes by getting diesel under the GST, so that price of the deregulated commodity can be reduced.
According to reports, the strike was more effective in Mumbai, the financial capital, whereas in other parts of the country, including Delhi, it was only partially so.
AIMTC claimed that about 93 lakh trucks are affiliated to the body. Essential commodities have reportedly been kept out of the strike.
Demands of the Truckers’ Association
Apart from demanding reduction in diesel prices, truckers were also against the "flawed and non-transparent" toll collection system that favours road concessioners and allege that the time and fuel losses go up to Rs 1.5 trillion annually on account of it.
Truckers are also miffed at high insurance premiums and want a reduction in third-party premiums, and exemption on third-party premiums from GST, reported PTI.
Apart from this, they also pressed for exemptions and abolition of indirect taxes, national permits for all buses and trucks, and also doing away with the direct port delivery tendering system.
Speaking to PTI earlier on 22 July, AIMTC Core Committee Chairman Bal Malkit Singh had urged the government's intervention for tangible resolution of the issues.
How Has the Strike Impacted Services?
The strike led to various organisations facing a lag in delivery services.
Deliveries from e-commerce marketplaces were especially delayed, with billing processes being disrupted, reported The Economic Times. Even Amazon reportedly sent text messages to its consumers, saying it was “doing its best to get delayed packages delivered at the earliest”.
Besides affecting delivery services of manufactured commodities, the strike also led to restricted supply of vegetables, fruits and dairy products, which led to a hike in prices.
The report added that several FMCG firms such as Britannia, Reckitt Benckiser, Nestle and Dabur have begun to face supply disruption at their plants.
Vegetable Prices Up, Huge Losses Recorded
Vegetable prices shot up by 10 to 15 percent on Sunday, 22 July, in Tamil Nadu, as a result of the nationwide strike, reported the Times of India. It predicted that the prices would surge up to 30 percent on Monday, if the strike was not called off.
According to the report, only 10 percent of the vegetable trucks are observing the strike to ensure that essential commodities are not affected.
However, the nationwide loss due to the strike is pegged at Rs 10,000 crore, reported The Times of India. In Maharashtra alone, losses due to the strike reportedly crossed Rs 2,000 crore.
Speaking to the Times of India, Raman Khosla, President of the Maharashtra Rajya Truck, Tempo, Tankers, Bus Vahatuk Mahasangh, said:
(With inputs from PTI, Times of India, Economic Times.)
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