The demonetisation effect has cost the truck rentals on trunk routes heavily. During November 2016, the truck rentals fell sharply by 30%, despite an exemption for toll payment on highways and a cut of R1.53 a litre in diesel prices. Retail cargo bookings have come down to 30% and full truck load movement has come down by 40% out of the total national fleet of 85 lakh trucks in the country, Indian Foundation of Transport Research and Training (IFTRT), the apex body tracking truck industry in India, said on Thursday.
On the contrary, large number of common carriers/transport intermediaries have been able to sink their unaccounted cash via diesel purchase by truck operators, to whom they hire for cargo deliveries received from consignors resulting in almost Rs 85,000 crore of old invalid currency having been converted into new in next few months, IFTRT pointed out.
Apart from toll exemption, which is 20% of the variable operating cost of the truckers, the Rs 1.53 a litre cut in diesel price in the mid of November with demonetisation paralysing the overwhelming majority of sectors of the economy, the truck rentals on trunk routes dropped by 30% and retail part load parcel bookings coming down to 30% as despatches from manufacturing sector for FMCG, consumer durables, electronic goods, general merchandise and other discretionary consumption having been put off by consumers across the country due to shortage of cash and shrinkage in buying power post currency demonetisation.