Minor impact on transportation costs
Tribune News Service
Amritsar, November 9
Recent reduction in fuel prices has negligible impact on shipment of goods as most transporters have not lowered freight charges.
SK Wadhwa, a tweed and blanket manufacturer said, “Transporters have not passed on the benefit of fuel reduction to customers yet. There’s nearly 10 per cent rise in the freight cost during the last one month. One can imagine its impact on the highly competitive woollen industry.”
Rajiv Sharma, who is associated with steel industry said, “There has been over 35 per cent hike in the freight charges since the implementation of the lockdown in the wake of the Covid.”
He said any increase in the freight cost has maximum impact on industries situated in border areas. “The entire raw material comes all the way from eastern parts of the country to the holy city. Then finished goods, including nails, nuts & bolts and weighing scales, are sold throughout India. Industrialists have to shell out more on transport tariff, thus increasing the input cost,” said Sharma.
Anandjit Singh, spokesperson, All India Motor Transport Congress, said following the reduction in diesel prices, transporters decided not to hike the freight cost, which was to be raised after Diwali. He said transporters had to incur huge losses on account of hike in diesel rates from around Rs61 in March 2020 to a high of Rs101 in early November.
