Striking truckers refuse to budge

Mumbai: A nationwide strike by tens of thousands of truckers entered its second day yesterday, pushing up prices of some commodities and threatening to choke supplies of fruit and vegetables.

The truckers, who are calling for cuts in taxes, tolls and diesel prices, were prepared to stay off the roads until their demands were met, said Charan Singh Lohara, president of the All-India Motor Transport Congress.

"We have not even received an invitation to further talks from the government," said Lohara, whose union says it represents the owners of 6 million trucks across the country.

There was about 10-20 per cent of normal freight traffic on Monday, Lohara said. "From today it will be a complete strike," he said, adding farmers would also lend support to the call for cheaper diesel.

More than 70 per cent of freight in India moves by road, and truckers had benefited from a booming economy that required the transport of steel and cement for construction.

But the country's 200,000 transport companies have been hit in recent months by a slowing economy, higher interest rates on vehicle loans and greater competition from the railways.

India cut prices of petrol and diesel on December 6 after crude oil tumbled, but the economy, Asia's third largest, has shown signs of slowing amid the global financial crisis after growing at 9 percent or more in the past three years.

Adequate stocks

Economists and government advisers expect expansion to moderate to around 7 per cent this fiscal year to March 31.

While sugar futures rose yesterday, large retailers said they had adequate stocks of fruit and vegetables for a few days.

Supplies to Maharashtra state's main wholesale market were not entirely hit, with some deliveries made in smaller vehicles.