“The suggestive action plan includes declaring transport services as an essential service and invoking ESMA, NSA, other legal instruments, cancellation of permit under Section 86 of the Motor Vehicles Act, 1988, requisitioning trucks and lorries under relevant legal provisions, involving local traders/business community etc,” an official release stated.

With the additional headroom given by dipping inflation, the government has used the option to play tough this time. In the previous strike of July 2008, inflation was soaring above 10 per cent and non-movement of goods would have further contributed to price rise.

The states have also been advised to make use of transport vehicles for carrying essential commodities without the requirement of any permit under the provisions of the Motor Vehicles Act, 1988. Maharashtra government has already issued notification to this effect. The states have also been advised to make adequate arrangements at railway terminals to speed up the loading and unloading of the goods transported through rail. The railways ministry has also stepped in to prevent a crisis on the supply of essential commodities and has told all its zonal offices to ensure speedy movement of perishable goods, food grains for public distribution system, edible salt, oil products etc.

This is the second time in six months that truckers are holding the government to ransom over a number of issues including diesel prices, toll, sales tax and service tax.

While Tamil Nadu, Andhra Pradesh, Maharashtra, Haryana and Punjab are actively participating in the strike, Bihar, North East states and Kerala have refused to join them. Truckers want a six-month moratorium on loan payments and toll. They also want Rs 10 a litre reduction in the price of diesel.

“The government is making all efforts to ensure free flow of essential commodities so as to minimise the inconvenience to the general public owing to the transporters’ strike which entered its second day today,” the release stated.

As per the information available with the Department of Road Transport & Highways, there was no report of adverse impact on supply of essential commodities across the country, it said.

10-20 per cent

Freight traffic in the country on Monday as percentage of the normal freight traffic

70 per cent

The freight that moves by road in the country

200,000

The number of transport companies in the country

Inflationary effect

The strike can push inflation by 50 basis points on account of shortage of perishable goods and panic buying by traders, according to National Council for Applied Economic Research There will be an immediate impact on food prices, so we could see a temporary blip in inflation. But since construction and manufacturing are slowing anyway, any impact will only be in the short-term.

Abheek Barua,

chief economist, HDFC Bank