Truckers strike: Traders feel the pinch as retail stocks get thin

Mayank Shah, category head, Parle Products, one of the largest biscuit makers in India, said dispatches from its factories to depots and warehouses were down 50-60 per cent.

Truckers Strike : The nationwide strike of transporters, which began last week, is now beginning to impact supplies at traditional as well as modern trade outlets, especially in the north and west. The fallout of the supply crunch would be felt in a day or two, a cross-spectrum of retailers told Business Standard. Sales could be affected, they added, a situation that both manufacturers and retail trade are unhappy about.

“While Big Bazaar is well stocked for now, there could be a problem if this strike continues,” Kishore Biyani, chief executive officer, Future Group, said. “Not only have the big truckers called off operations (as part of the strike), our assessment is that even the smaller guys at the local level are not supplying any products. This feeder network is critical for retail,” he said.

Neville Noronha, managing director and chief executive officer, Avenue Supermarts, which runs the D’mart chain of outlets, said, “It is impacting our supplies severely. Though it is not reflecting in our stores yet, it will begin to show shortly.”

Wholesalers and retailers stock products for 10-15 days, since replenishment happens quickly. In some cases, trucks and tempos supplying essential items come in daily at stores, depending on how fast a category moves, a Mumbai-based distributor said. “In such an event, tempos not coming for days can impact sales straightaway. We are already seeing it for some packaged food categories such as biscuits,” he said.

Mayank Shah, category head, Parle Products, one of the largest biscuit makers in India, said dispatches from its factories to depots and warehouses were down 50-60 per cent, as much of this was outsourced to trucking majors. “Even the next level of transportation from warehouses to stockists, super-stockists and distributors is not happening. Naturally, this will impact supplies to the last-mile retailer – whether modern trade or traditional trade,” he said.

Ajay Gupta, managing director, Capital Foods, the maker of the Ching’s Secret brand of noodles, said he was feeling the impact of the transporters’ strike at two levels.

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Truckers begin nationwide indefinite strike against rising fuel prices

The strike is likely to cause a hike in prices of perishable goods items due to supply constraint.

Truckers Strike : Truck owners and operators launched an indefinite nationwide strike on Monday against increasing diesel prices and a sharp hike of third party insurance premium.


"The indefinite strike against the soaring diesel prices and steep rise in the third party insurance premium begun this morning. About 90 lakh trucks are expected to be off the road and as of now, over 60 per cent trucks were not plying on the roads across India," the All India Confederation of Goods Vehicle Owners' Associations President Channa Reddy told IANS.


"The government's argument is that the fuel price increase was due to international prices. However, we think the reason for price increase is not due to international prices but high taxes levied by the governments, Centre and the states," Reddy said.


Demanding the inclusion of diesel prices or petroleum products in the ambit Goods and Services Tax (GST), the Federation of West Bengal Truck Operators' Association Joint Secretary Sajal Ghosh said there has been a good response in the state where about 3.5 lakh trucks would not ply on the roads.


He said the Federation is also protesting police and Motor Vehicle Department officials' alleged excesses in the state.


Moreover, truck owners requested the Insurance Regulatory Development Authority of India to detariff the third party insurance premium as it has done in the case of comprehensive insurance policy, Reddy said.


"Since the trend of annual increase of third party insurance premium has been continuing for last 15 years even after opening of the insurance sector. To stop the increase per year, we have requested the IRDAI to detariff this. But, the authority has not responded to our demand," Reddy added.


The strike is likely to cause a hike in prices of perishable goods items due to supply constraint.