Truckers call off strike after overnight talks with govt

MUMBAI (Reuters) - Truckers in India ended their general strike on Friday after convincing the government in overnight talks to reduce toll taxes and meet other demands, a union leader said.

"All of the problems are solved," said Charan Singh Lohara, president of the All India Transport Motor Congress, which says its represents nearly 5 million trucks across the country.

"At 3 a.m. we have signed an agreement."

Truckers had been on a peaceful strike since Wednesday, causing an increase in the prices of fruits and vegetables. Lohara had said if transport businesses had to raise their costs then they would lose custom to the railways.

The end of the strike will come as a relief to India's beleaguered government, already occupied with taming inflation at a 13-year high and finding enough vital support in parliament to stave off snap elections after leftist allies threatened desertion over a nuclear deal with the United States.

A similar week-long strike in August 2004 slowed industrial growth by disrupting shipments, and dampened diesel sales.

Lohara said the government had agreed to reverse a rise in road tolls that took place in December 2007 and to advise fuel companies to make cheap unbranded diesel freely available after truckers complained they were being compelled to buy expensive branded diesel.

Officials reached at the transport ministry were not immediately able to give any comment.