About 90 per cent of the total 130 groundnut units have already downed their shutters, while transporters have been forced to sell off their trucks, as they are unable to pay their loan installments.

Bharatbhai Desai, proprietor of Saubhagya Traders (groundnut unit), said: “Global meltdown has severely affected the groundnut industry in Junagadh and across the Saurashtra region. Depreciation of the rupee against the dollar has affected the price parity. Groundnut prices have gone down by 30 per cent in the international market, which has resulted in materials being returned.”

According to Desai, about 1,000 tonnes of exported groundnut have been returned by foreign buyers. Earlier, groundnut was priced at

Rs 40,000 per tonne; now, it is priced at Rs 32,000 per tonne. The price difference has forced traders to shut down their businesses.

“A single groundnut unit employs about 150 people, depending on its capacity. About 90 percent of the units in Junagadh have either shut shop or are functioning in a limited manner. Some twenty thousand people, mostly labourers, suddenly became unemployed with the closure of these units,” Desai said.

Bhanabhai Amin Transportwala is in the transport business. His business is mainly with the south Indian states. He said, “The meltdown has hit the entire transport industry like never before. Although freight charges have been reduced to a loss-making level, transporters have found no goods to transport.”

He added, “Earlier, truck operators used to make a couple of trips to Bangalore every month. At present, no truck load is available to Bangalore. The truck remains off the road for two-three weeks.”

According to Transportwala, some ten thousand people connected with the transport business have been badly hit by the crisis.

Besides, the industry has been facing serious problems for long. Various taxes including service tax, insurance charges, toll taxes, increased fuel charges and vehicle loan burdens are some of the prime reasons behind the present fall. Unless the government takes proper steps immediately, the industry will collapse soon, he said.

“The government should reduce fuel prices, service tax and TDS, besides completely removing toll taxes collected on highways across the country,” he said.