Rice Trade Disrupted Due to the Rise in Freight Charges

The truck union has increased the freight charges by 50% for the transport of cargo. The Punjab Rice Millers and Exporters industry is trembling due trip the price rise.

Increase in Freight Charge by 50%

The self-styled truck union is demanding double the charge for ferrying goods. They are charging the customers 50% higher than the previously set price for ferrying the cargo from Gujarat and Maharashtra to seaports. For instance, the increase in price from Rs120-130 to RS 190-200 per ton for transportation between Amritsar and Gujarat and other seaport destinations. Thereby, affecting domestic trade and export.

Rice Trade Downfall as Freight Charges Increase

Recent reports from the Punjab Rice Millers and Exporters association showed that more than1000 trucks travelled from Amritsar alone every month. Majorly, these trucks carried rice and basmati cargo to different parts of the country. Also, a significant part of this cargo was for export. Currently, the majority of the basmati exporters are from Punjab. The said exporters collectively had a turnover of over Rs 14,000 crore. Now, the non-compliance of the truckers has caused worry among traders. Further, this has delayed the shipments and thus, disrupted the rice trade.

Delay in Shipment and Freight Rate Rise Lands Small Businesses in Trouble

As a consequence of the COVID-19 pandemic, several shipments are left stranded in the port. Furthermore, several cargos are not reaching the port due to the drastic price rise. Even though retail giants are facing issues, they are manageable. However, small businesses are facing the wrath of the disrupted supply chain. For instance, traders that can not afford delays in shipment must pay three times the standard prices.

Overall, the price rise is troublesome for the supply chain that is already broken due to the COVID-19 pandemic. Consequently, the rice trade in India as well as other countries are facing a major misfortune.

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