VIJAYAWADA: While the Covid-19 pandemic has hit the transport sector, particularly road transport, the steep hike in fuel price comes as a double blow to lorry owners across the state.
According to the Andhra Pradesh Lorry Owners Association (APLOA), at least 15% of lorry owners across the state have become bankrupt since the outbreak of the pandemic, with many others likely to follow suit if the situation does not improve.
General secretary of APLOA, Y V Eswar Rao, said the situation has become grim and survival in the business is under serious threat. “We have been surviving on the six-month loan moratorium given by the Union government as part of pandemic relief measures, but it is not sufficient for us to sustain in the changed market scenario,” he said.
Rao observed that there has been a shift in freight transport from road to railways, especially during the lockdown, which has continued in the post-lockdown period as well. The road transport sector has lost a sizeable amount of its business to the railways, with the shift in business from road to railways creating a gap in demand and supply, he added.
“With demand remaining low we are not able to increase prices in accordance with fuel price hikes. But at the same time, we are also not able to bear the mounting burden of the hike, which is eating away at our profit margins,” said Rao.
Small players, particularly, with just one or two vehicles have been facing severe distress as they are unable to pay EMIs on their loans, Rao said, adding that several lorry owners have been pushed into bankruptcy after financial institutions seized their vehicles by declaring them as non-performing assets (NPAs).
President of the Krishna district lorry owners association Tummala Lakshmana Swamy said from the 40,000 heavy vehicles that used to ply in the district, the number has come down to a little over 30,000. Indicative of the distress in the sector, he pointed out that not a single heavy vehicle was bought in the district since the onset of the pandemic.
Now, in order to be able to sustain themselves in the business, lorry owners have decided to cut back on miscellaneous costs.
Lorry owners will not pay depreciation costs of freight especially in case of agricultural produce. They have also decided to pass on the loading, unloading, parking, weigh bridge and clerical charges to freight owners. Further, they have also resolved to charge extra for a waiting period.
