Brace for price surge as freight charges set to rise

The spiralling fuel price is likely to have a cascading effect on essential commodities in the coming days. With diesel prices nearing Rs 100 per litre – and the steep increase in the price of spare parts and tyre – transporters are gearing up to increase freight charges, which in turn may result in a 20 per cent rise in the price of commodities.

Diesel price was increased for the ninth time in two weeks, totally amounting to Rs 7.61; a litre of the fuel costs Rs 99.04 per litre in Chennai on Sunday. “We have asked district associations to hold talks with stakeholders to increase freight charges for road transport considering the surge in fuel price and insurance cost. It is likely to go up by 20 to 30 per cent,” said S Yuvaraj, spokesperson, All India Motor Transport Congress, Southern Zone.

VR Soundararajan, member of the Market Management Committee of the Koyambedu wholesale market complex and a wholesale trader of vegetables, said the lorry owners’ association have already begun talks with the traders at the market to increase freight charges. They have sought a 30 per cent increase in freight charges. We think it will go up by 20 per cent,” he said. As vegetables and fruits are mainly sourced from Karnataka, Andhra Pradesh and Maharashtra, their prices are likely to go up in the city, he said.

“We get spices from Kerala, most of the vegetables from Karnataka, dals from Uttar Pradesh and Madhya Pradesh, and onions from Maharashtra. If the cost of transportation goes up, it will result in the rise of price of essentials, which will affect the public,” Soundararajan said.

P Sukumar, treasurer, Koyambedu Vegetables, Fruits and Flowers Merchants’ Association, said vegetables and fruits sourced from the neighbouring states like Karnataka and Andhra Pradesh are likely to go up by over Rs 2 per kg. “If the vegetables are transported within 100 to 200 km radius, the price will go up by Re 1 to Rs 1.5 per kg,” he said.