The eight-day truckers’ strike, which was called off late Friday evening, constricted movements of industrial raw materials, finished goods and essential commodities across the country, jacking up their prices. Gujarat bore the brunt of the strike, with the supply of textile products, industrial raw materials and agri commodities being hit badly.
The strike was called by truckers across the country to protest against the introduction of the e-way bill, exorbitant toll collections at plazas, and inclusion of diesel under the goods and services tax (GST). They also demanded a reduction in levies and permits.
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According to an official statement, the government will constitute a high-level committee headed by the Road Secretary to facilitate expeditious resolution of the demands of the transporters. It was this assurance on the part of the government that brought about the withdrawal of the agitation by transporters' body, All India Motor Transport Congress.
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The panel would look into the truckers' demands including e-way bill implementation, GST related issues of the transport sector and rationalisation of TDS rates.
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As far as ease of toll collections is concerned, the central government has agreed to put in place a technology-driven mechanism to ensure seamless movement of trucks across toll plazas in six month’s time.
With regards to e-way bill, “It is agreed in-principle that there should be distinction in the treatment of clerical errors and evasion.”
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During the past 7-8 days, crop losses owing to floods triggered by torrential rainfall have already caused a lot of suffering for farmers. The agitation has added to the woes, dealing a body blow to traders' activities, especially in agri-commodities and textiles across Gujarat. Farm product arrivals and dispatches have almost come to a standstill the past four days. Though prices of essentials have largely remained stable or have risen marginally in wholesale markets, there has a been sharp increase at the retail-level in many cities.
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Transportation of automobile components and their exports have also been hit.
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Gujarat's Saurashtra region is witnessing sluggish arrivals of cotton, groundnut and pulses, while central and southern regions of Gujarat are facing a sharp decline in their regular supplies of fruit and vegetables.
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Atul Kamani, president of the Commission Agents' Association at the Rajkot APMC said loss to the Rajkot mandi alone has been estimated at Rs 400-500 million so far. North Gujarat's major Unjha mandi has seen a loss of Rs 800 million. "North Gujarat's Unjha is known for its cumin seed exports. Containers from Mundra port have stopped coming to Unjha. We have also not been able to trade in fennel, psyllium, and sesame seeds since the strike started," said Vijay Joshi, president of the Unjha Commodity Association.
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Surat, one of the largest synthetic textile hubs in the country, has been suffering a daily loss of Rs 500 million on account of the strike. Ahead of the festival season, "Surat typically dispatches 400 trucks loaded with textiles daily. The strike has crippled the industry here," said Manoj Agarwal, President of Federation of Surat Textiles Traders' Association (FOSTTA).
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Down south, in Tamil Nadu, the strike has resulted in loss of around Rs 250 billion, says a transporters’ body. “Perishables like fruits, vegetables and flowers continue to reach the market in Chennai, albeit with a delay, resulting in prices quoted as per quality," said A Selvaraj, general secretary of Koyambedu Tomato Wholesale Traders' Association.
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Fruits and vegetables prices in Delhi and its adjoining areas have largely remained stable as wholesalers and traders have augmented their supplies from non-traditional areas. Onion and potato traders in the largest wholesale market of Azadpur said the supplies had stagnanted. Rajendra Sharma, former chairman of the Azadpur APMC, said, "Onion supplies from Maharashtra and Madhya Pradesh had halved but we have managed to double supplies from neighbouring Rajasthan." In the case of potatoes, a slowdown in supplies from Uttarkhand has been compensated with supplies from neighbouring Agra, Aligarh.
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As a result of this, Sharma said, onion prices in Delhi and adjoining areas fell by Rs 1-1.5 per kg and potato by Re 1 per kg.
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Rajkumar Bhatia, a leading fruit trader in Azadpur said, "Arrivals are adequate, but outward movement has slowed down due to the strike, because of which there has been a drop in prices of some vegetables."
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Arrivals of agricultural commodities declined sharply in Mumbai Agricultural Produce Markets Committee (APMC).
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Sugar supply in Mumbai APMC has reportedly declined by a sharp 80 per cent this week. "Sugar is already under the Essential Services Maintenance Act (ESMA), which ensures supply of essential commodities. There has been no impact on its prices so far," said Sanjay Khatal, Managing Director, Maharashtra State Co-Operative Sugar Factories Fedration Ltd.
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Supply of all other agri-commodities also plunged similarly. "However, crippling supplies are yet to make an impact on prices as traders normally hold stocks for 15 days. If the strike continues for a couple of days more, then prices would start firming up in the wholesale mandis," said Sharad Maru, President, Grain Rice & Oilseed Merchant Association (GROMA).