Gujarat stares at losses worth Rs 1,200 cr in indefinite transport strike

Transporters are losing Rs 100 crore per day; arrival of agri-commodities hit

Hit by the nation-wide transport strike, the losses of industry, transporters as well as the government crossed Rs 1,200 crore, estimate industry sources. Agriculture, engineering sector, and export-import business have been affected in the strike, which entered its fifth day on Monday.

The strike called by All India Motor Transport Congress (AIMTC) is causing trasnporters to loose Rs 100 crore per day, claims Mukesh Dave, secretary, Akhil Gujarat Truck Transport Association. He also added that the loss to the industry can be roughly estimated to be around Rs 1,200 crore.

The strike is estimated to have started impacting industries, especially in the Saurashtra region, as raw material supplies have been hit.

Moreover, with the kharif harvesting season in progress, the strike has impacted the arrival of agri-commodities in the Agricultural Produce Market Committee (APMC), that has virtually come to a halt since the last five days. Arrival of groundnut and cotton have started in the state since last two weeks but due to strike, arrivals of the agri commodities is almost next to nothing. As a result,traders too have stopped booking new orders.

One one hand, the APMC authorities have restricted farmers from bringing in their produce for sale at the APMC to avoid inventory pile up in the market area, on the other, manufacturing sector is facing severe raw material crunch.

For example, the brass parts industry, together with auto-components, and other engineering industries are not only facing raw material shortage, but have also been unable to dispatch orders during the last five days.

P C Somaiya, secretary, Gondal APMC, said, "We have restricted farmers from bringing in their commodities to the APMC as offloading of stock is not possible at this time due to transport strike."

A Gujarat Chamber of Commerce and Industry (GCCI) official said, "It is hard to predict the losses, but as of now industrial activities in Gujarat have been affected thanks to the transport strike. Manufacturing sector is the worst hit."

"With over ten million trucks and tempos being on a strike since past five days, it has led to shortage of essential commodities like milk, fruits and vegetables and their costs are likely to increase by about 10-15 per cent per day if the strike continues," noted an analysis on financial impact of transporters' strike conducted by the economic research bureau of Assocham.

Lakhabhai Keshwala, president of Jamnagar Factory Owner's Association said: "Brass parts industry is fully depending on imported brass scrap and as strike continues, we have scarcity of raw material. The industry is already not doing well as such and the ongoing strike would affect our businesses more as we would not be able to dispatch orders in time."

Assocham has urged the AIMTC to call off the strike.