PARVATHIPURAM/MANAYM: The rising fuel prices, surging maintenance expenses and unviable freight rates have pushed the lorry industry to the brink in Saluru as the truck operators are in the opinion that parking the vehicles would be more profitable than running them.
The fleet strength has plummeted dramatically from 2,000 to 1,500 within just six months.
For many operators, keeping a truck parked in the yard has become a more financially viable option than running it on the highway.
As a result, at least 20,000 families are affected directly and indirectly in Salur mandal of the district.
At least 2500 trucks are being operated from Salur mandal alone and the majority of the trucks transport coal, iron fines and other minerals from neighbouring Odisha and Chhattisgarh to Visakhapatnam port.
At a time when the lorry owners were recovering from the major slowdown during Covid, the sharp increase in fuel costs and spare parts costs due to the ongoing middle-east crisis hits the Salur lorry industry very hard.
Speaking to the TNIE, a truck owner from Salur, Srinivasa Rao said, “The fuel price hike has completely broken the back of the local motor industry. Even if we brave all odds and run the vehicles, the operational constraints imposed by neighbouring states and stagnant market rates make it a losing battle,’’
‘Truck owners are disillusioned and are looking to sell off their vehicles. If this trend continues, Salur’s historic trucking industry will soon be a thing of the past’, Salur lorry owners’ association former secretary Indupuri Narayanarao said.
At least 20,000 families are depending this lorry industry.
‘‘Earlier, the operators used to get Rs 10,000 after all expenses for a standard round trip between Visakhapatnam and Raipur. They have operated at least three trips per month and could manage EMIs, and other maintenance expenses.
However, hike of Rs 12 per litre on diesel and the steep increase in set of tires and spare parts have gone up to Rs 40,000 per month, which is totally unviable for the operators.
Now, the owners are are unable to pay monthly vehicle loan instalments (EMIs), driver and cleaner salaries, and statutory insurance premiums. Many owners are forced into a vicious cycle of debt just to pay their fixed overheads. The lorry industry is facing severe crises for the past few months.