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Karnataka truckers end strike after state orders release of Rs 244 crore dues
Karnataka truckers end strike after state orders release of Rs 244 crore dues

India Today

timea day ago

  • Business
  • India Today

Karnataka truckers end strike after state orders release of Rs 244 crore dues

The Karnataka government has issued an official order releasing Rs 244.1 crore to lorry association towards pending dues connected with the Anna Bhagya food grain distribution scheme. The amount covers transportation charges for the period between February and May 2025. Following the government's decision, the lorry association has called off its strike and resumed grain transportation under Karnataka's Anna Bhagya Guarantee Scheme had come to a standstill on July 7, with lorry owners halting operations across the state in protest over non-payment of dues by the government. The Federation of Karnataka State Lorry Owners and Agents' Association and the Karnataka State Public Distribution Food Grains Transport Contractors' Association alleged that the state had failed to clear outstanding payments of over Rs 260 crore since Shanmugappa, president of both associations, said the lorry operators had transported nearly 25 lakh tonnes of rice under the scheme from February to June but had not received any payment. On Jun 19, the contractors had issued a 15-day ultimatum, warning of an indefinite strike if the dues were not cleared. They had also demanded that their Earnest Money Deposits be refunded and flagged their financial distress, stating that many owner-drivers were struggling to pay Employee Provident Fund, Employees' State Insurance and taxes. Despite repeated appeals, the associations claimed the government had failed to act, forcing them to stop lorry strike threatened to severely disrupt the Anna Bhagya scheme, one of the Congress party's five flagship guarantees announced ahead of the 2023 Assembly elections. The scheme has already faced multiple setbacks. Since July 1, 2023, the government had reduced the monthly rice allocation from 10 kilograms to 5 kilograms after the Union government declined to provide rice under the Open Market Sale response, the state had begun direct cash transfers of Rs 170 per beneficiary, calculated at Rs 34 per kilogram. However, when the Union government later agreed to sell rice at a fixed price until June 2025, Karnataka resumed distributing rice in kind instead of cash. - Ends IN THIS STORY#Karnataka

Karnataka truckers halt Anna Bhagya guarantee rice supply over Rs 260 crore dues
Karnataka truckers halt Anna Bhagya guarantee rice supply over Rs 260 crore dues

India Today

time2 days ago

  • Business
  • India Today

Karnataka truckers halt Anna Bhagya guarantee rice supply over Rs 260 crore dues

Food grain transportation under Karnataka's Anna Bhagya Guarantee Scheme came to a standstill on July 7, with lorry owners halting operations statewide in protest over non-payment of dues by the government. The Federation of Karnataka State Lorry Owners and Agents' Association and the Karnataka State Public Distribution Food Grains Transport Contractors' Association have alleged that the state has failed to clear outstanding payments of over Rs 260 crore since Shanmugappa, president of both associations, said they had transported nearly 25 lakh tonnes of rice under the scheme from February to June, but have not received any payments. 'The government says they have no money to pay us. In fact, to participate in the tender, we deposit money and our money is still with the government,' he said. 'Every time we request, they give different dates and tell us the government has no money. We are not going to transport rice anymore and we are not responsible for this anymore.'The contractors had earlier issued a 15-day ultimatum on June 19, warning of an indefinite strike if Rs 260 crore in dues were not cleared. They also demanded that Earnest Money Deposits be refunded and pointed to their financial distress, with many owner-drivers struggling to pay Employee Provident Fund, Employees' State Insurance and taxes. Despite repeated appeals, the association claimed the government had not taken any action, forcing them to stop Congress legislator RV Deshpande acknowledged the delay but criticised the strike. 'There is a slight delay in the payment to the lorry owners. They have been working with the government for years now. But they can't paralyse the whole system. Small children are the final consumer of this rice,' he MP Basavaraj Bommai criticised the Congress-led government over the crisis, saying, 'This government has gone bankrupt and people are fighting for the chair.'Leader of Opposition in Legislative Council, Chalavadi Narayanswamy, said, "This government is an empty vessel, no money for development or guarantees. Just Rs 56,000 crores is kept for guarantees. What about the rest of the budget? AICC is taking money from Karnataka and now Bihar elections is coming and Congress party, sending money to Bihar."The ongoing strike threatens to severely disrupt the Anna Bhagya scheme, one of the five flagship guarantees of the Congress party, announced ahead of the 2023 Assembly elections. The scheme has already faced difficulties. Since July 1, 2023, the government had been providing only 5 kg of rice instead of the promised 10 kg after the Union government declined to supply rice under the Open Market Sale compensate, the state began direct cash transfers of Rs 170 per beneficiary, calculated at Rs 34 per kg. However, with the Union government later agreeing to sell rice at a fixed price until June this year, Karnataka resumed distributing rice instead of cash. Now, with the transport network halted, the scheme faces renewed uncertainty.- Ends IN THIS STORY#Karnataka

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