Shillong, Nov 22: Cement manufacturers in Meghalaya 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 that could affect Meghalaya’s broader economic momentum.
In a memorandum to the Deputy Chief Ministers, the Jaiñtia Hills Cement Manufacturers Association (JHCMA) said stated that the demand to revise the freight of Rs 7 per tonne-kilometre to Rs 9 per tonne-kilometre for both cement and clinker 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.
They said that companies are already paying around 35 per cent above the broader market rate to nearly 80 association-linked trucks operating daily from Lumshnong.
As per the manufactures, market rates hover around Rs 1,000 per MT while association-linked vehicles are already paid approximately Rs 1,370 per MT for the Lumshnong–Byrnihat route. “At the proposed rate of Rs 9 per tonne-kilometre, the cost would climb beyond Rs 1,700 per MT, which 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 that would impact individual homebuilders, contractors and public works.
JHCMA claimed 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 challenge if found inconsistent with statutory limits or market norms.
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.
The manufactures pointed that the 16-day strike called by Meghalaya Commercial Truck Owners and Drivers Association (MCTODA) between October 27 and November 11 had an adverse impact across the supply chain, as it not only halted the movement of vehicles belonging to the association but 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.
