16-day MCTODA strike cripples Meghalaya's cement supply; manufacturers warn proposed freight hike may destabilise market

Shillong (Meghalaya) [India], November 23 (ANI): Meghalaya's cement manufacturers have told the state government that the 16-day strike called by the Meghalaya Commercial Truck Owners and Drivers Association (MCTODA) between October 27 and November 11 severely disrupted movement of cement and clinker from the Jaintia Hills cluster, and that a steep increase in freight rates sought by the trucker associations could unsettle the state's construction economy at a time when the industry is still recovering from the disruption, a press release stated.
In a detailed memorandum submitted to the Deputy Chief Ministers, the Jaintia Hills Cement Manufacturers Association (JHCMA) said the agitation had an adverse impact across the supply chain, as it not only halted the movement of vehicles belonging to the association but also affected trucks operated by other owners along the Lumshnong-National Highway 6 corridor. According to the manufacturers, the restrictions forced plants to scale down production, accumulate unsold inventory and absorb significant financial losses, while builders and retailers across the state faced reduced availability of cement.
The memorandum notes that the strike was called off on November 11 following government intervention, after which the associations and plant representatives met to discuss a way forward. The industry says that during these discussions, rather than working to restore normal movement at existing rates, the trucker associations demanded that the prevailing freight of Rs 7 per tonne-kilometre be revised upwards to Rs 9 per tonne-kilometre for both cement and clinker.
The manufacturers have submitted that companies are already paying around 35 per cent above the broader market rate to nearly 80 association-linked trucks operating daily from Lumshnong. According to them, increasing the rate to Rs 9 per tonne-kilometre would take effective freight charges to nearly 70 per cent higher than what non-association truckers charge for similar distances, making the logistics cost uncompetitive and difficult for the industry to sustain.
To underscore the economic impact, the memorandum provides an example of the Lumshnong-Byrnihat route, where market rates hover around Rs 1,000 per MT while association-linked vehicles are already paid approximately Rs 1,370 per MT. At the proposed rate of Rs 9 per tonne-kilometre, the cost would climb beyond Rs 1,700 per MT, a rise the industry says is not supported by any market-driven rationale and is an uneconomic demand. The manufacturers argue that such a hike would inevitably translate into higher cement prices for consumers.
The memorandum includes representations from more than 100 cement dealers across Meghalaya, many of whom have expressed concern that an increase of this scale would immediately raise retail prices and impact individual homebuilders, contractors and public works. JHCMA has also noted that MCTODA is an owners' association, and that benefits from a higher rate would be limited to a small group of truck owners, while the wider population would bear the cost through higher construction prices.
On the regulatory front, the manufacturers have referred to provisions of the Motor Vehicles Act and subsequent notifications, stating that the government's authority to fix or revise freight rates for such transport is limited. They have suggested that any move to formally notify the Rs 9 per tonne-kilometre rate would require careful legal examination and could face a challenge if found inconsistent with statutory limits or market norms.
The memorandum urges the state government to ensure that freight pricing remains aligned with competitive market conditions, cautioning that any sudden or steep revision risks destabilising supply chains and affecting Meghalaya's broader economic momentum. The manufacturers have also requested the government to take steps to prevent prolonged disruptions on key transport corridors, while allowing all stakeholders, including transporters, to raise concerns through structured dialogue rather than stoppages. (ANI)