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Home > Business > Reuters > Report

Truckers must end strike before talks, says govt

April 22, 2003 17:46 IST

The central government said on Tuesday it would hold no negotiations with striking truckers until they called off their nine-day-old work stoppage that has paralysed freight movement nationwide.

Transport Minister B C Khanduri told Parliament the two sides were not far apart over the truckers' demands for stable fuel prices and fewer levies.

But he said talks would have to wait until the strike, which business lobbies estimate is costing hundreds of millions of dollars a day, was called off.

"My request to the striking transporters is…as there's no difference of opinion on most demands, it would help in creating a congenial atmosphere if the agitation is called off," he said.

There was no immediate comment from leaders of the AIMTC, India's biggest union with 2.7 million vehicles in its fold. They vowed earlier not to end the protest before resuming negotiations with the government.

But in a sign the strike might be losing steam, truckers in West Bengal and Andhra Pradesh called off their protest after pledges from state officials that most of their demands would be met.

The strike, which business group FICCI calculates is costing wholesalers, retailers and industry Rs 1,500 crore (Rs 15 billion) a day, has crippled deliveries -- creating food shortages, paralysing ports and halting parts shipments to plants.

The AIMTC launched the strike on April 14 to back demands which included calls for a halt to frequent fuel price hikes, immunity from a planned value-added tax, an end to toll fees and minimum freight rates.

While the two sides, who met briefly last week, were in accord on most issues, the government needed time to complete formalities before striking a deal, Khanduri said.

The minister added one major sticking point remained. He said the government would not agree to the truckers' demand that they be exempted from paying tolls on major highways.

Residents of various cities said prices of some vegetable had shot up by as much as 50 per cent due to shortages as only small vehicles now are delivering produce.

But state authorities said vegetable prices in rural areas have tumbled due to a glut as farmers cannot transport their goods to cities.



© Copyright 2003 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.





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