By Our Reporter
SHILLONG, Nov 22: Meghalaya’s cement manufacturers have urged 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 the state’s broader economic momentum.
The appeal comes following the 16-day strike called by the Meghalaya Commercial Truck Owners and Drivers Association (MCTODA), which was called off on November 11.
In a detailed memorandum submitted to the deputy chief ministers, the Jaintia Hills Cement Manufacturers Association (JHCMA) stated that the agitation severely disrupted the movement of cement and clinker from the Jaintia Hills cluster.
According to them, the strike not only halted the movement of vehicles belonging to the association but also affected trucks operated by other owners along the critical Lumshnong-National Highway 6 corridor.
The cement manufacturers also revealed that plants were forced to scale down production, accumulate unsold inventory and absorb significant financial losses, while builders and retailers across the state faced reduced availability of cement.
Although the strike was called off on November 11 following government intervention, the industry has warned that subsequent demands by trucker associations could have severe long-term economic repercussions.
According to them, during post-strike discussions, associations reportedly demanded that the prevailing freight rate be revised upwards from Rs 7 per tonne-kilometre to Rs 9 per tonne-kilometre for both cement and clinker.
The association termed this an “uneconomic demand”, noting that companies are already paying approximately 35 per cent above the broader market rate to nearly 80 association-linked trucks operating daily from Lumshnong.
The manufacturers also provided a comparative analysis of the Lumshnong-Byrnihat route.
According to them, while general market rates for this route hover around Rs 1,000 per MT, association-linked vehicles are already paid significantly higher at approximately Rs 1,370 per MT. They said if the proposed rate of Rs 9 per tonne-kilometre is implemented, the cost would climb beyond Rs 1,700 per MT—a rise the industry says is not supported by any market-driven rationale.
The manufacturers argued that such a hike would push effective freight charges to nearly 70 per cent higher than what non-association truckers charge for similar distances, thereby rendering logistics costs uncompetitive and difficult to sustain.
The memorandum also included representations from more than 100 cement dealers across Meghalaya, many of whom expressed concern that an increase of this scale would immediately raise retail prices, impacting individual homebuilders, contractors and public works projects.
The association highlighted that as MCTODA is an owners’ association, the benefits of a higher rate would be limited to a small group of truck owners, while the wider population would be forced to bear the cost through higher construction prices.
On the regulatory front, the manufacturers referred to provisions of the Motor Vehicles Act, suggesting that the government’s authority to fix or revise freight rates is limited.
They cautioned that any move to formally notify the Rs 9 per tonne-kilometre rate would require careful legal examination and could face challenges if found inconsistent with statutory limits.
The industry has requested the government to take steps to prevent prolonged disruptions on key transport corridors and to facilitate structured dialogue for all stakeholders, rather than allowing future stoppages to dictate market terms.
