All India Motor Transport Congress (AIMTC), the apex body of transporters, has urged Centre to establish a minimum freight rate for trucks to bolster transport industry, which is grappling with unhealthy competition due to the absence of a standardized freight structure.

In a proposal submitted to the Centre, the AIMTC has advocated for implementation of a minimum freight for all categories of commercial vehicles, akin to the system in place for buses and auto rickshaws.

"We have forwarded a proposal to the centre to institute a minimum freight for all types of commercial vehicles. Currently, there is no such price ceiling, and consequently, operators are accepting loads at any price they can secure, solely to maintain operations and encroach upon others' business. This does not constitute healthy competition and is detrimentally impacting the sector," said AIMTC president Amrit Madan.

"The introduction of a uniform pricing structure will foster a conducive environment for healthy competition within the truck segment. We have submitted this proposal to the government and are amenable to engaging in discussions with senior officials," added Madan.

Transporters have indicated that festivals and weddings typically constitute the primary business season for the truck sector, characterized by an upsurge in loads from various industries and sectors. But, this year, bookings are yet to gain momentum.

They have reported that bookings for transportation of goods from industries and trade segments have remained relatively stable in Oct, mirroring the trend observed in previous months.

AIMTC (West Zone) former vice-president Vijay Kalra said, "The demand for trucks is stable. There hasn't been a significant surge in demand due to increased number of vehicles, which has resulted in stagnant bookings. In such a scenario, the implementation of a uniform pricing structure becomes even more crucial to ensure equal opportunities for all operators".

As per the association's estimates, approximately 1 crore commercial vehicles are operational in India. Madhya Pradesh is estimated to have around 4.5 lakh commercial vehicles in operation.