The Hindu Business Line : Truck rentals up 10-15%

THOUGH there has been no upward revision in domestic diesel prices in the recent past, truck rentals have gone up by 10-15 per cent during the last two months. This could be partly attributed to increased arrival of seasonal fruits, vegetables and wheat crop.

The domestic 16-25-tonne capacity heavy trucks have benefited following upward movement in truck freightage by 8-10 per cent on trunk routes due to increased arrival of seasonal fruits, vegetable and wheat crop in the wholesale markets in the last eight weeks, stated the Indian Foundation of Transport Research and Training (IFTRT), a research body. Medium and short-haul cargo have also increased leading to a 12-15 per cent increase in freight rates for 5-7.5-tonne capacity truck for carriage of perishable fruits and vegetables and intra-State local haul of wheat crop to various mandis in the last two months.

The impending threat of hike in diesel prices by Rs 1.80 per litre has further strengthened the truck freightage, as the trading community has mentally prepared for corresponding escalation in truckers' operating expenses. In the last three months, tyre costs too have gone up by about 12 per cent. Diesel and tyre together constitute 90 per cent of the operating expenses of truckers on trunk routes.

Meanwhile, there are apprehensions that inter- and intra-State retail parcel booking rates are also witnessing an increase, since traders and transporters have shed their fears about the value-added tax enforcement.

"Inter and intra-State retail parcel booking rates shot up by 10-12 per cent during the last six weeks as VAT fear among tax-avoiding traders-transporters combine evaporates in the trading centres due to slackness by enforcement agencies," claimed IFTRT.

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