Truckers strike, prices to soar

Truckers went on a nation-wide strike from Saturday to protest against the imposition of the 10 per cent service tax in the Budget. Though t...

Truckers went on a nation-wide strike from Saturday to protest against the imposition of the 10 per cent service tax in the Budget. Though the representatives have assured that the supply of essential commodities would not be affected due to the strike, prices of perishable commodities like fruits and vegetables are expected to shoot up. The strike would affect the prices at a time when inflation has already soared to near 8 per cent.

Companies, specially car and two-wheeler manufacturers, have stock piled important components and have started hiring buses to avoid any disruption in production. They have also built up inventories at dealers end to keep providing products.

Though Finance Ministry officials tried to approach the All India Motor Transport Congress (AIMTC), the Association which has given the call for the strike, truckers seemed adament. Talking to the media, AIMTC presdient J.M. Saksena said: ‘‘Yes, the Finance Ministry approached us last night but we will talk not to anyone other than the Finance Minister or Finance Secretary. We have stopped work from 6 am after our efforts failed to convince the Government to rollback the 10 per cent service tax announced in the Budget.’’

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According to the AIMTC estimates, the strike would cause a loss of Rs 500 crore per day to truckers and Rs 4,000 crore to the Government besides resulting in Rs 15,000 crore production losses daily. However, a section of transporters in Kerala, Karnataka, West Bengal and Tamil Nadu stayed away from the protest. ‘‘We are not participating in the strike as the tax does not affect us,’’ Karnataka Lorry Owners’ Association president B. Channa Reddy told agencies in Bangalore.

In Tamil Nadu, the transporters owing allegience to the Tamil Nadu Lorry Owners Federation did not join the strike.