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Striking truckers set for long haul

New Delhi, July 2: About four million trucks went off the roads today after their owners began an indefinite strike to protest against taxes and rising fuel costs.

The strike is expected to push up prices of food and other essential commodities.

In Bengal, almost all 150,000 goods vehicles, including trucks, mini trucks and vans, were off the roads. Loading and unloading of goods stopped and trucks on the road halted wherever they were, with the exception of those carrying perishables. Only 1,000 trucks were allowed to deliver foodgrain and vegetables to flood-hit areas.

K.K. Bansal, chairman of the All-India Motor Transport Congress co-ordination committee, said Bengal transport minister Subhas Chakraborty has called a meeting tomorrow. “But it’s a national issue. The state has no role to play,” he added.

Talks between the truckers and Union transport minister T.R. Baalu to end the strike failed this evening. “Yes, the hike in toll tax in February was too much, but it was through an act of Parliament... It is not possible to roll back the hike,” Baalu told transporters.

The Centre also refused to reverse the rise in the price of diesel, on which trucks run, but offered to ensure availability of unbranded fuel and review the service tax.

V. Sridhar, member of the Central Board of Excise and Customs, said: “We are ready to consider the demand of goods transport agencies for enhancing the abatement rate from the present level of 75 per cent.” Abatement rate is deducted from the total billing amount of the service provider to arrive at the tax liability.

The petroleum ministry has directed Indian Oil, Bharat Petroleum and Hindustan Petroleum to make unbranded diesel available across the country, adds PTI.

The truckers had alleged they were being forced to buy premium diesel at higher and unregulated prices.

“We are striking to protest against a multitude of taxes and increases in input costs due to the rise in retail fuel prices. Our profit margins are under pressure as oil companies force us to buy branded diesel which costs more,” said Charan Singh Lohara, president of the All India Motor Transport Congress, which represents the truckers.

Industry chamber Ficci said the strike could further increase the pitch of inflation, which is on a 13-year high of 11.45 per cent, and cause large-scale disruption in industrial activity.

D.K. Joshi, principal economist with credit rating agency Crisil, said: “The strike would have immediate impact on the perishable commodities and if it prolongs, it would affect industrial production and economic growth.”

Over 75 per cent of the cargo, food and other essential items are carried by trucks, also the preferred mode of transport for FMCG white goods. Analysts said interruption in the supply of commodities could result in a loss of over Rs 1,500 crore for the economy every day.

A similar week-long strike in 2004 had slowed down annual growth in industrial output to 7.9 per cent from 8.4 per cent in the previous month.

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