Tribune press service
Amritsar, November 9
The recent reduction in fuel prices has a negligible impact on freight shipping as most carriers have not reduced freight costs.
SK Wadhwa, a tweed and blanket manufacturer, said: âCarriers have yet to pass the benefits of fuel savings on to customers. The cost of freight has increased by almost 10% in the past month. One can imagine its impact on the very competitive wool industry.
Rajiv Sharma, who is associated with the steel industry, said: “There has been a more than 35% increase in transportation costs since the lockdown was implemented following the Covid.”
He said any increase in the cost of freight has the maximum impact on industries located in border areas. âAll the raw material comes from the east of the country to the holy city. Then the finished products including nails, nuts and bolts and scales are sold all over India. Manufacturers have to pay more on transport tariffs, thus increasing the cost of inputs, âsaid Sharma.
Anandjit Singh, spokesperson for the All India Motor Transport Congress, said that after the diesel prices were cut, carriers decided not to increase the cost of freight, which was to be increased after Diwali. He said carriers had to suffer huge losses due to the rise in diesel tariffs from around Rs 61 in March 2020 to a peak of Rs 101 in early November.