/ 2 July 2008

Millions of India truckers strike over fuel, taxes

Millions of Indian truckers went on strike on Wednesday to protest against high taxes and rising fuel bills, union leaders said, adding that a meeting with the Transport Ministry had failed to resolve the dispute.

Trucks provide the transport lifeline of India’s economy and a lengthy strike would threaten not only goods supplies, but also industrial output. Diesel sales could drop sharply.

”About 4,5-million trucks are off the road as part of our indefinite strike. Transportation of all goods, including essential items, has been stopped,” said SK Sharma, an adviser to the All India Motor Transport Congress.

”We have to wait and watch for the government’s response.”

TR Baalu, India’s Transport Minister, released a statement asking the transporter associations to end their strike, saying the ministry was trying to sort out their problems.

In the southern city of Chennai, about 1 000 protesters waved placards in a noisy rally, while vegetable vendors said people had already began panic-buying potatoes and other groceries.

Any prolonged action will add to the woes of India’s coalition government, which is already battling inflation soaring at a 13-year high. Also, its communist allies are threatening to withdraw support over a nuclear deal with the United States, raising the prospect of a snap election.

Charan Singh Lohara, president of the truckers’ congress, which represents both large and small operations, and other representatives met Transport Ministry officials on Wednesday.

The ministry said in its statement that it had explained in the meeting the reasoning behind some of the rate hikes, and was trying to solve some of the other problems raised.

Lohara said he was unhappy with the minister’s response, and that the strike would continue ”until the government solves our problems”.

A similar week-long strike in August 2004 pulled monthly diesel sales down 9,3% from a year earlier and hurt annual growth in industrial output because of disrupted shipments.

Lohara said earlier most of the four million trucks he expected to stay off the roads were long-distance cargo carriers, consuming between 75 and 80 litres of diesel a day. — Reuters