"Our agitation is continuing and it is very successful. As of now, there are no talks scheduled with the government," a spokesman for the All India Motor Transport Congress (AIMTC) told Reuters.

The truck transport operators are seeking a roll back in the retail price of diesel, which was increased by about a third earlier in the month, in line with global trends.

Transporters estimate 2.26 million trucks, 350,000 private buses and 166,000 light commercial vehicles are off the roads.

The government said the flow of essential supplies are being maintained in most states.

"We have stopped operations not only between states, but also within states and cities," said the AIMTC spokesman.

The agitation by the truckers has severely disrupted air and ocean freight movement, industry officals said.

"Our business is down by 30-40 percent since the truckers'strike," said Vipin Vohra, a leading freight forwarder.

He said truck movement between the large towns and smaller export centres has been severely affected, cutting the flow of goods.

The disruption in goods flow is leading to idle spaceaboard airlines and inside ships, industry officials said.

Prices of vegetables and some essential commodities have also shot up in many states on panic buying by consumers.

Wholesale traders said the effect of the truckers' strike was not yet severe, but was likely to turn acute if the situation was prolonged and stocks in storehouses were exhausted.

Meanwhile, the country's tea production has fallen short by 50 million kgs causing the Indian Tea Association (ITA) to press the panic button.

According to the ITA source in Guwahati, the shortfall was mainly due to uneven distribution of rainfall in the country. ``We have lost the first flush due to lack of rain and then came the heavy shower which is also not healthy for the tea bushes,'' sources said.

The deficit is maximum in Assam where shortfall has been 33 million kg while in Surama Valley (Cachar) it is 3 million kg.

The picture in Dooars is also equally bad where the shortfall was 11 million kg. The Darjeeling and the Terai has shown some improvement in the production but still the overall deficit remains at 2 million kg.

The ITA official apprehended that the tea estates might not be able to catch up the targeted production of 265 million kg of tea during the year.

The shortfall is less in south India where it is around 4.7 million kg against the total north India's deficit of 50 million kg.

According to a data of the United Planters' Association of South India(Upasi), the country's tea production declined by 19 per cent in the first half of the current annual year to 261.2 million kg against 322.1 million kgs last year.

Even going by India Tea Board's contention that last year's production could not be taken into account in view of that being an extraordinary one, the production was lower than the 181.1 million kg produced in 1997.

A similar trend prevailed in south India also with production dipping to 93.6 million kg against 103.1 million kg a year ago and 99 million kg in 1997. In view of the fall in production, Indian Tea Association has projected tea harvest to decline to 835 million kg this year against 868.2 million kg in 1998. In fact, global tea production has shown nearly 100 million kg decline mainly due to fall in India's harvest.

Kenya, world's largest exporter, reported a 39.8 million kg fall in production up to may, while Malawi, Uganda and Bangladesh, too, reported a fall in harvest.

Though Sri Lanka's production was up 13 million kg up to may, it had slid in June, industry sources said. The fall in production so far has been against a 139.2 million kg rise in harvest in 1998 with Kenya being the major contributor in the increase.