Even as the country?s premier think tank National Council for Applied Economic Research (NCAER) warned that continuation of the truckers? strike?which began on Monday?would result in higher inflation, the protest is hurting several sectors, including exporters who are already reeling due to the global slowdown.

Pointing out that as the daily movement of goods worth around Rs 1,400 crore has started getting affected due to the strike, Federation of Indian Export Organisations (the apex body for exporters) has written to shipping and transport minister TR Baalu to find an amicable solution to the matter.

?If there is a delay in shipment of goods by more than 4 days, foreign buyers will push us to send the cargo by air, which is five times costlier. If the strike goes beyond 10 days, such a delay will result in cancellation of orders. As it is we are suffering due to demand slow down in the West,? FIEO president A Sakthivel said.

According to NCAER, if the truckers? strike goes on for over four days, inflation can go up by 50 basis points due to shortage of perishable goods like milk and vegetables and panic buying by traders.

The government was relieved as inflation had fallen to a 10-month low at 6.38% for the week ended December 20, after touching a 16-year high of around 12.63% for the week-ended August 9.

The government threatened to cancel the permits of agitating truckers and invoke the Essential Services Maintenance Act. It even partially accepted the demands of the agitating truckers by exempting eight services provided by sub-contractors to transporters from payment of service tax. But all these failed to put an end to the strike.

All India Motor Transport Congress (AIMTC) had called the strike demanding a reduction of diesel prices by Rs 10 per litre and exemption from service tax.

The truck operators are also demanding uniform 4% VAT on diesel, scrapping of registration and return filing clause in the new Carriers Act, reduction of tyre prices by 30-35% and rolling back of national permit fees from Rs 5,000 to Rs 1,500.

While the road transporters are adamant not to call of their indefinite nationwide strike, the government is making efforts to ensure free flow of essential commodities to minimise the inconvenience to the general public owing to the transporters? strike.

?The suggestive action plan includes declaring transport services as an essential service and invoking ESMA, NSA, other legal instruments like cancellation of permit, requisitioning trucks and lorries under relevant legal provisions, involving local traders community,? the department said.

The states have also been advised to make use of the transport vehicles for carrying essential commodities without the requirement of any permit under the provisions of the Motor Vehicles Act, 1988. The Maharashtra government has already issued notification to this effect. The states have also been advised to make adequate arrangements at railway terminals to speed up the loading/unloading of the goods transported through rail.

As per the report available with the department of road transport & highways, there is no adverse impact on supply of essential commodities across the country till now.

The state governments have been advised to take all possible measures to ensure that the supply of essential commodities is not disturbed. An action plan has already been suggested to the state governments specifically to deal with the strike.

Meanwhile, the ministry of railways has issued instructions to all its zonal offices to ensure speedy movement of essential commodities such as perishable goods, food grains for public distribution system, edible salt, and oil products, among others.