Russian Satellite Network quoted the Press Trust of India (PTI) news agency as reporting that more than 9 million truck drivers in India began an indefinite strike on the 20th, demanding lower diesel prices and federal road tolls.
A large number of truck drivers’ strikes have led to insufficient transportation capacity, which will have an adverse impact on all parties, including ginners, textile mills, traders, etc. First of all, the strike has seriously affected the launch progress of seed cotton in the new year, and many ginners are facing shutdowns due to insufficient supply of seed cotton. Secondly, textile companies generally maintain a certain amount of cotton inventory, so the current supply of raw materials is less affected. However, yarn, gray fabric and other products will be affected by increased warehousing costs and delayed delivery due to insufficient transportation capacity. Thirdly, the obstruction of cotton transportation makes the exporter unable to perform the contract, which can only be solved by canceling the contract or delaying shipment and paying liquidated damages.
Mr. Atul S. Ganatra, chairman of the Cotton Association of India (CAI), said that the current strike has led to a complete disruption of India’s domestic cotton industry. The entire cotton industry is in a state of semi-paralysis, and all parties in the market have suffered serious losses. He called on the government to take effective measures as soon as possible to properly solve the problem, otherwise it will cause huge losses to the entire cotton industry. (Title: Indian truck drivers strike leads to serious shortage of transportation capacity)
