Rediff.com« Back to articlePrint this article

Talks between govt, truckers fail

April 17, 2003 12:43 IST

The crucial talks between the government and striking transporters on Thursday failed to make any progress to end the four-day long strike with both the parties sticking to their positions.

The nationwide indefinite strike by truckers demanding stable fuel prices and fewer levies began on April 14.

Milk, fruit, vegetables likely to fall short

Fruit and vegetable traders have said there is likely to be a major shortage of perishable commodities if the ongoing strike by truckers is prolonged.

The number of trucks entering Delhi with fruits and vegetables has fallen to 300 a day from 550 before the strike began, while the number of trucks carrying milk has come down to 425 from 600.

Private dairy suppliers and some Mother Dairy booths have also been complaining of a shortage in milk supply because of the strike.

However, Rajinder Sharma, chairman, Agriculture Produce Marketing Committee, said, "Though the number of trucks entering the Capital with fruits and vegetables has fallen, tempos and lorries pressed into service have increased to 1,700 from 600, ensuring regular supplies."

Even in the case of milk, traders say though the supply is a little less than adequate, small commercial vehicles will start bringing in supplies within two days.

As long as small commercial vehicles remain out of the agitation, the situation will remain normal in the case of fruit and vegetable supplies.

Trilok Chand Sharma, president of the Potatoes and Onions Merchants Association said, "Right now, there is no adverse price impact, but a long strike can hit supplies and jack up prices."

Even though wholesale prices of 25 important fruits and vegetables had not risen significantly, retailers had seized the opportunity to hike rates despite normal arrivals, he added.

Petrol bunks begin to dry up

Meanwhile, as the strike entered its third day on Wednesday, most petrol bunks went dry for want of timely replenishment by oil marketing companies.

R Chidambaram, manager (corporate communications) of Indian Oil Corporation, said: "On a normal day we deliver close to 250 to 300 loads of petrol and diesel to the city. Today (Wednesday) we managed only 70 loads."

Cement, steel sectors to feel the heat

The strike will have a major adverse impact on cyclical industries like steel and cement, which bank heavily on pre-monsoon offtake, producers of air-conditioners and beverages, which depend on high sales during the summer, and non-durables and high-end pharmaceutical companies, whose products have a short shelf life.

Ispat Industries says as much as 20 per cent of its deliveries to its customers are behind schedule. Though the strike has so far not affected steel prices, there are indications that they are set to dip.

Like steel, even the cement sector counts on a high pre-monsoon offtake as cement can't be stored during the monsoon. Cement industry officials say that even if the strike persists for 10-15 days, "it will mean valuable despatches lost".

The truckers strike will also hit the consumer durables sector and will have a major impact on products like air conditioners and refrigerators which see a major sales pick-up during the summer months. Says a Voltas executive: "April is a peak season for air conditioners and the demand is high.

"The strike will impact business. We are producing air conditioners but are not able to despatch them.  This is an opportunity lost for us. If the strike  prolongs for over 5 days, the impact will be higher."

Pranab Barua, managing director of Godrej Tea, said, "The extent of the hit was maximum in Mumbai, and now it has begun to spread."

Beverage sales, almost 50 per cent of which take place during summer, are likely to be hit too. Sunil Gupta, vice-president, Coca-Cola India, said: "We are hoping for an amicable and early resolution of the issues between the government and the transporters .... It is, however, too early to comment about the impact of the current transporters' strike on our business."

Additional inputs: Business Standard