Truckers’ strike: Trade bodies fear losses, seek immediate resolution

As the ongoing nationwide truckers’ strike entered its seventh day, affecting the supplies of commodities and various other goods, trade bodies, fearing losses due to the impact, have demanded that the government intervene and resolve the crisis.

“It (the strike) has affected the arrival of kapas (raw cotton). Ginning factories are on the verge of closing down because of the lack of raw material. Traders are unable to move cotton sold and in turn all payments are stuck due to non-movement of yarn,” said Atul Ganatra, President, Cotton Association of India.

CAI urged the government to find an amicable solution to the problem, which, if not resolved immediately, will compound the adversity and the losses to the entire cotton sector, stated Ganatra.

Cotton, sugar hit

The shipment of cotton has stopped, leading to non-fulfilment of obligations by exporters, and resulting in the problems of cancellation or invoice or delayed shipment with penalty. This has entailed huge losses. The textile industry is also not getting the required raw material as supply has been impacted.

Besides cotton, trading was affected at several APMCs across various States.

Trade sources said arrivals of commodities have dropped by 55-60 per cent over the past few days and farmers were being advised not to bring in their produce. However, there has been no major impact on prices so far due to ample stocks.

But in Maharashtra, at the retail level, prices of onion and potato have increased by ₹10/kg. A vendor from Chembur, S Suleman, said that in the last two days the prices of onions have increased from ₹20 to ₹30. The same is the case with potato. Prices of tomato are also up from ₹ 40 to ₹60/kg.

Sugar prices at the Vashi market skyrocketed by ₹24-94 a quintal in the absence of new arrivals due to the ongoing strike. Spot sugar rates have gone up by ₹120-200 a quintal in six days.

APMCs suffer as stocks rise

Atul Kamani, President, Commission Agents’ Association at Rajkot AMPC, stated that actions for commodities like jeera were suspended till the strike is over. “We are unable to load the stock and we can’t accommodate more stocks if the farmers continue to bring their crops,” he said.

Ashok Waluj, Director, Maharashtra Rajya Bazaarsamati Mahasangh — the apex body of all APMCs in the State — told BusinessLine that the APMC market was functioning smoothly on Thursday. About 600 trucks bearing vegetables and 200 trucks of onions arrived in the marketyard without any hitch.

Meanwhile, ₹300 crore worth of turmeric piled up at the marketyards in Erode, Tamil Nadu. “Due to the truckers’ strike, turmeric trade has been affected and the yards are piled with turmeric stocks. Many farmers could not bring their turmeric for sale and we are catering to the local demand by despatching turmeric bags in bullock carts,” said Krishnamurthy, a trader.

Sudhakar Shetty, President, Federation of Karnataka Chambers of Commerce and Industry, said the government should invite the truckers for a discussion and resolve the issues. He said the prices of commodities may start going up once the stocks deplete.

(With inputs from Our Correspondents in Erode

and Mumbai)

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