Slow Down in Nakhatrana Trucking Industry as Lignite Demand Plummets
May 21, 2025
Nakhatrana:The once-thriving truck-transport industry in Nakhatrana belt of Kutch, a critical employment sector after agriculture and animal husbandry here, is reportedly in a dire state, threatening the livelihoods of thousands. A sharp 25 percent drop in lignite consumption, sourced from Kutch, has dealt a blow to the business, which also transports essential commodities like cement and salt.
Truck owners in the West Kutch region are expressing concerns over challenges that include dwindling demand for locally sourced lignite due to its high price compared to supplies from other states like Rajasthan. Gujarat-based mills and factories are increasingly opting for cheaper lignite from Rajasthan, slashing the business for Kutch transporters to a mere quarter of its previous volume.
Compounding the crisis are the dilapidated road conditions in the region, leading to frequent damage to vehicles and inflated maintenance costs due to expensive spare parts. Truck owners report that the Department of Mines and Minerals’ pricing policy for Kutch lignite has rendered it uncompetitive. Previously, sources indicate, around a thousand trucks were loaded daily for lignite transportation alone; this number has now drastically shrunk.
Adding to the woes of local transporters, the Archaean Company has reportedly deployed approximately 100 of its own trucks for salt transportation. This move has impacted the business of other truck owners who relied on this trade.
Many truck owners, burdened by debt, fear they may be forced to sell their vehicles at scrap prices. “We have never witnessed such a prolonged and deep recession in all these years,” a group of distressed truck owners stated. The industry is appealing for urgent intervention to address issues of lignite pricing, road infrastructure, and fair competition to salvage the transport sector.DeshGujarat
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