Truckers’ strike in India beginning to affect supply chains

Thursday, 26 July 2018 23:03:15 (GMT+3)   |   San Diego
       

All India Motor Transport Congress (AIMTC) started a truckers’ strike on July 20 and according to Bal Malkit Sing, Core Committee Chairman for AIMTC, the strike is indefinite and will go on until demands are met. Union government negotiators and AIMTC are under negotiation. The strike is presently not nationwide and is being supported by 20-30 percent of the drivers in India with the Maharashtra region affected the most.

Among other concessions, the truckers’ lobby is demanding a reduction in central government and state levies on diesel fuel, claiming transport fuel costs are too high. Truckers are also against the toll collection system, high insurance premiums, and GST taxes on the third-party premiums. Additionally, they also seek solutions to additional indirect taxes and addressing the national permits system.

According to the Indian Foundation of Transport Research and Training (IFTRT), “trade, commerce and industry were unruffled” by the strike as it “only had a partial impact in some parts of the country.” Others, though, report that the ongoing strike has affected the supply chains of some raw materials, products and household items in various parts of the country. Some manufacturers in varied industries have reportedly been forced to either shut down or reduce production due to the lack of raw materials on site while others report inability to fully deliver orders. The effect of the strike has been reduced by the activities of transport startups that are continuing transport activities. These companies consider themselves digital solution providers and not traditional transporters.


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