Truckers stayed off the road for the second today, demanding lower diesel prices and permit fee, squeezing supplies of essential commodities that gave way to panic buying across markets.
Incoming traffic in the national capital's Azadpur mandi, Asia's largest wholesale vegetables market, was a notch lower than usual -- an indication that only vehicles that were already loaded are coming in, traders said.
The government has threatened to invoke the Essential Services Maintenance Act if the strike is not called off soon and also cancel permits granted to truckers.
Prices of essentials such as vegetables have not gone up as of now, but could surge if the strike continues. "Only 90-95 trucks came in today against the usual 100-120 and the supplies were sold with speed," Azadpur Onion and Potato Merchants' Association President Trilokchand Sharma said, adding there were signs of panic buying.
Think-tank NCAER's senior fellow Rajesh Shukla said inflation could shoot up by 50 basis points if the strike continues for three-four days.
"We will continue the strike till there is a favourable response from the government. LPG and oil transporters have also joined the strike," Bombay Goods Transport Association General Secretary Girish Agrawal told PTI in Mumbai.
"We are willing to surrender our licences," he retorted to the government's threat of cancelling permits.
AIMTC, the umbrella body with over 4,000 affiliated unions, called the strike to demand lower diesel prices and permit fee and exemption from service tax among other things.
The finance ministry on Monday exempted eight services provided by sub-contractors to transporters from payment of service tax.
Demand for onions from Lasalgaon, the country's largest market for the kitchen bulb, and Nashik has risen significantly, but traders did not link it entirely to the strike.
The demand, mainly from the southern states, could also be because of the backlog as the markets were closed in the region for the last three days.
NAFED Vice Chairman C B Holkar said 1-1.5 lakh (100,000-150,000) quintals of onions arrived at Nashik. The prices have increased along with the demand. "The strike will have an impact on retail prices and not so much on wholesale prices."
Azadpur trader Trilokchand Sharma said prices are expected to go up in the days to come going by past experience.
Onion trader Sher Singh in Azadpur market said wholesalers were paying more to get truckers to maintain supplies. Against Rs 160 per quintal paid on normal days, traders were now shelling out Rs 200 a quintal to get supplies, he said.
Kashmir Apple Merchants Association President Mehta Ram Kriplani said apple arrivals are the same as before -- 250 trucks.
"The strike is irrational, many of the demands (of truckers) are state-related issues, which have to be worked out," Transport Secretary Beam Dutt had told reporters in Delhi.
The truckers' associations claim that diesel prices had not been reviewed despite a fall in fuel prices in the international market. On December 6, the government had reduced diesel prices by Rs 2 a litre.
