Around one lakh lorries in the State have stopped operation due to poor freight rates, claimed C. Dhanaraj, president of the State Lorry Owners Federation-Tamil Nadu (SLOFT), on Tuesday.

Speaking to the reporters, Mr. Dhanaraj said that in the recent executive of the federation, it was decided to increase the freight rate by 25% starting June 15. For the past 20 days, the price of diesel has increased by ₹8 per litre in total.

For the past four years, even though the price of diesel was hiked, the lorry freight rate was not increased. In addition to diesel, prices of oil, auto parts, tyres, insurance premiums, and toll gate charges have also increased. He added that freight rates had to be increased in order to support the livelihood of lorry owners.

Urging traders to accommodate to the hiked freight rates, Mr. Dhanaraj said booking agents and transport companies can also get the hiked freight rates. “Earlier, lorry owners received ₹800 as a freight rate per tonne of goods to transport from Salem to Chennai, now, it has been increased to ₹1,050,” he added.

The federation also demanded the State government to fix the freight rate. There are six lakh lorries (heavy vehicles) and 20 lakh light heavy vehicles in Tamil Nadu. Already, 2.5 lakh lorries were not operating due to debts. Now, due to the diesel price hike and other reasons, one lakh lorries have stopped their operation. “We expect the State government to voice out this issue. If the price of diesel is reduced, lorry owners would be able to operate the vehicles,” Mr. Dhanaraj added.