UPDATE 1-India truckers' strike ends on eighth day

(Recasts with strike ending)

MUMBAI Jan 12 (Reuters) - Indian truckers on Monday called off an eight-day strike that had nudged up prices of commodities and disrupted supplies of industrial goods, after talks with the government on measures including cuts in tolls and taxes.

"The All India Motor Transport Congress withdraws the strike unconditionally. Transport services shall be restored forthwith," the industry body, representing about six million trucks, said in a joint statement with the transport ministry.

The transport ministry clarified there would be no increase in toll taxes on national highways for a period of one year, as agreed last July, and that a committee would look into issues relating to national permits and rationalisation of taxes.

"On reduction in diesel prices ... an appropriate decision will be taken after considering all aspects," the statement said.

The junior oil minister on Monday said India planned to cut fuel prices in 10 days. Fuel prices were last cut on Dec. 6.

Some key truckers' union officers were arrested at the weekend, and deliveries of fruits, vegetables, essential goods and commodities had resumed on Monday in several states including Maharashtra, Andhra Pradesh, Karnataka and Rajasthan.

More than 70 percent of freight in India moves by road, and truckers had benefited from a booming economy which encouraged demand for transport of cement, steel and finished goods.

But the Indian economy, Asia's third-largest, has showed signs of slowing amid the global financial crisis after growing at about 9 percent or more in the past three years.

An industry survey at the weekend showed business confidence sank to a seven-year low, with most corporates fearing a further weakening in the overall economic condition. See [ID:nDEL418353]

While the truckers' strike disrupted supplies for manufacturing and construction, it was expected to have only a limited impact on inflation, which is at a 10-month low.

"This (strike ending) would now ease the movement of raw-materials and finished goods ... and also the shortage of essential commodities," said Vijay Kalantri, president of the All India Association of Industries.

A three-day truckers' strike last July pushed up prices of produce, and a week-long strike in 2004 slowed industrial growth.

India last week also reeled from a strike by oil sector workers, which delayed flights and forced taxis off the streets.

That strike ended on its third day on Friday after the government called in troops to load tankers and threatened to imprison union leaders.

Labour activism, particularly in state-controlled sectors, is seen ticking up ahead of national elections due by May. (Reporting by Rina Chandran; Editing by Valerie Lee) (For the latest Reuters news on India see: in.reuters.com, for blogs see blogs.reuters.com/in)