Modi’s ‘Masterstroke’ Leaves 40% Of India’s Trucks Off-Roads
The government's demonetisation drive could lead to a shortage of essential commodities, as nearly 40 percent of the trucks that transport these goods have not left the parking yard in the last one week owing to a paucity of cash.
India is largely dependent on trucks to transport food items and essential supplies to and from the hinterland, with over 80 percent of these supplies finding their way to the consumer by road. The All India Motor Transport Congress (AIMTC), India's largest truckers' union, said these trucks haven't even been to roll out of the parking yards, with truck owners strapped for cash to pay for essentials like fuel and food on the highway.
Truck operators largely deal in cash; from filling diesel to paying tolls, and from paying for food at roadside ‘dhabas' to paying bribes to the police. Around 40 percent of the trucks have not moved because we don't have cash to pay for the basics. The government has set a limit for withdrawing cash, which by no means can meet our requirements.Kultaran Singh Atwal, Chairman, All-India Motor Transport Congress
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The situation is exponentially worse for the individual drivers, some of whom are being forced to drive without meals for hours. “Dhabas don't accept cards. They take only cash. If we give them Rs 500 currency notes, they either don't accept or give us food only worth half, and don't return the change. I had lunch at night, last night,” said one truck driver. Truckers in India typically drive as much as 4,000 kilometres on a single trip, often through treacherous roads in remote areas where cash is the only mode of payment accepted by the locals.
Truckers also allege atrocities by the police, accusing them of refusing to return the necessary change after payment of fines. “I was fined for a violation, and the policeman kept a Rs 1,000 note for a Rs 600 fine, but didn't return the change. When I asked for it, he threatened to beat me up and put me behind bars,” said another truck driver.
Atwal said his union had apprised the government of their problems, and had urged for a higher withdrawal limit, which would ease the pain, but no help had come so far.
To make matters worse, tolls were still being collected in many parts of the country despite a clear directive from the Centre to halt the process till November 18. Almost all truckers BloombergQuint spoke to had receipts to show to that effect.
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