The Hindu Business Line : Spices, tyre sectors hit hard by truckers' strike

THE truckers' strike, which has entered the third day on Monday , has severely hit the tyre industry with tyres piling up, while in the oleoresin industry raw material supply has been be affected.

The major tyre manufacturing units in the State of Apollo Tyres Ltd at Perambra in Thrissur district and Premier Tyres Ltd at nearby Kalamassery have tyres piled up worth Rs 12 crore for want of trucks to carry them to various parts of the country, industry sources told Business Line. They said that manufacturing would not be affected now as the units have inventory of raw materials for 15 days.

Meanwhile, the oleoresin industry has also been partially hit now as the strike has hindered the raw material supplies. Mr CV. Jacob, Managing Director of Synthite Industrial Chemicals Ltd at nearby Kolencherry, said that the supply of raw materials from Mysore to its units here and in Karnataka has been stopped and as a result there could be a drop of 20 per cent in production of spice oils and oleoresins. However, transportation of finished products has not been affected as they are being shipped out from the Kochi port.

Disruption in the movement of pepper is also partially responsible for decline in its prices both in the spot and futures markets, according to market sources. Because of this, the buyers are not active now, they said. Similar situation prevails in the cardamom trade also. "If the strike continued transportation of cardamom to upcountry markets would be adversely affected and consequently the prices are likely to fall," trading sources in Bodinayakannur in Tamil Nadu and in Kumily said.

No impact on rubber

The ongoing truckers' strike has so far had no impact on movement of natural rubber and dealers and rubber consuming industries do not expect any shortage of the commodity at least for the next 10 days.

"We have sent 10 days materials in advance in view of this strike. There won't be any stoppage of production at least on account rubber shortage," an official with a leading tyre manufacturer said.

He said almost all tyre makers have taken a similar step since the indefinite strike was announced.

Dealers here said any impact on price rubber because of the strike will be palpable only if it lasts for two weeks or so. Even if tyre makers stay away from the market, there is another set of buyers who would buy rubber with the hope of selling their stocks at a higher price once the strike is over.

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