The Tamil Nadu Lorry Booking Agents Association (TNLBAA) has increased the freight charges for the transportation of goods by 22% from Monday following the steep increase in the price of diesel.
TNLBAA president V. Rajavadivel told The Hindu that diesel price had increased manifold in the recent past, causing a heavy financial loss to the entire lorry transportation industry. The association has written to lorry owners, various traders’ bodies, industrialists and textile unit owners seeking their support for the freight hike given the present critical situation.
In Chennai, merchants at the Koyambedu wholesale market for fruits, vegetables and flowers noted that they were already facing a loss of 20% as lorry operators ferrying perishables had increased transportation cost between ₹2,000 and ₹5,000 a vehicle, depending on the distance.
The increase in freight charges by the TNLBAA would apply to corporate companies, and not to the wholesale market.
S. Chandran, president, Koyambedu Market Licensed Merchants Association, said, the transportation cost varies on a daily basis now. “We agree to lorry operators’ demand as these are perishable goods They demand a hike even if the toll charges go up. We have to bear the loss when there is no demand for the produce. We cannot pass it on to customers until the demand picks up,” he said.