BENGALURU: Traders transacting business between Karnataka and Tamil Nadu continue to bear the brunt of the repercussions caused by last month’s violent Cauvery agitations. After a dark Dasara, merchants are hoping that things pick up at least before Diwali.
Movement of goods between Tamil Nadu and Karnataka is taking place smoothly now but with a 25-35 per cent increase in freight charges.
Bangalore Wholesale Foodgrains and Pulses Association president Ramesh Chandra Lahoti says truckloads of pulses, Sona Masuri rice, steam rice and onions are among the items sent to Tamil Nadu daily. “Apart from the regular rates of `22,500 for a truckload of goods, an additional `15,000 was paid to transport goods last month. There were literally no Dasara celebrations for traders due to the additional costs incurred,” he said.
The cost of transporting 1kg of any item shot up from `1.50 to `2.50 last month. “Things normalised a week ago, but the previously prevalent rates are not being charged. The cost of transporting a kg is now `2, which is nearly a 35 per cent increase over previous rates,” Lahoti pointed out. Traders are forced to pass on the burden to consumers, he added.
Bharat Shah, a consultant to many foodgrain and pulses merchants in the city, says the increase in charges applies to both exports and imports between the two states and the end result is that the consumer has paid more for commodities exchanged between both states (see box). “Dasara sales have definitely slumped for all the traders here,” he adds.
Vastupal Sanghvi, proprietor of Sree Mookambika Trading Company at APMC Yard, Yeshwantpur, imports truckloads of pulses daily from Chennai. “I used to pay `120 for transporting one quintal (100 kg) of either urad dal, tur dal or moong dal by truck. It shot up to `170 a quintal for a fortnight when the agitation was at its peak. The transportation cost has reduced to `150 now but it is still 25 per cent more than what I used to pay earlier, “ he says.
When asked about why they are made to pay increased freight charges, he says that some truckers still stop their vehicles at the border between the states around 6.30-7 pm. “They halt there for a few hours and enter only under the cover of darkness. Hence, the additional charges are levied,” he says.
Things will be okay after Nov 5
Yeshwantpur APMC Local Lorry Owners Association president G Kumar conceded that the transportation charges were on the higher side now.
“Some top exporters have declared a one-week to 10-day closure of shops for Diwali. This has forced lorry owners to reduce the number of trucks on the roads. Due to the reduced number of vehicles plying, the rates have gone up,” he said.
He assured that rates would stabilise and go back to the days before the Cauvery protests, by November 5. When asked if the hikes during festive season was an annual occurrence, Kumar said, “No. Those plying lorries last month had to undertake much risk when crossing the Hosur border. Hence, transportation charges were jacked up. It has continued after that.”