Truckers' strike pushes up commodity prices

By Rina Chandran

MUMBAI (Reuters) - A nationwide strike by tens of thousands of Indian truckers entered its second day on Tuesday, pushing up prices of some commodities and threatening to choke supplies of fruits and vegetables.

The truckers, who are calling for cuts in taxes, tolls and diesel prices, were prepared to stay off the roads until their demands were met, said Charan Singh Lohara, president of the All India Motor Transport Congress.

"We have not even received an invitation to further talks from the government," said Lohara, whose union says it represents 6 million trucks across India.

There was about 10-20 percent of normal freight traffic in India on Monday, Lohara said.

"From today it will be a complete strike," he said, adding farmers would also lend support to the call for cheaper diesel.

More than 70 percent of freight in India moves by road, and truckers had benefited from a booming economy that required the transport of steel and cement for construction.

But the country's 200,000 transport companies have been hit in recent months by a slowing economy, higher interest rates on vehicle loans and greater competition from the railways.

India cut prices of petrol and diesel on Dec. 6 after crude oil tumbled, but the economy, Asia's third largest, has shown signs of slowing amid the global financial crisis after growing at 9 percent or more in the past three years.