Improved cargo offerings from the manufacturing and re-engagement of the truck fleet in infrastructure projects pushed trucks rentals up by 4 to 5 per cent on trunk routes in February 2016. Yet another factor was the brisk arrivals to APMCs of fruits and vegetables according to S P Singh, Senior fellow and co-ordinator, IFTRT. The rise in freight rates in February 2016 on trunk routes comes on the back of a drop in rentals by 4 to 6 per cent in January 2016. According to Singh, the 4 to 5 per cent rise in rentals seems to reflect an increase in hiring by factory and infrastructure sector. He drew attention to the double digit growth in sales of heavy truck segment driven by a strong replacement demand and regulatory fears. The negative bit was the rise in diesel price by Rs.1.47 per litre effective March 01, 2016, and the finance ministry refusing to roll back the excise duty hike on diesel. The excise duty hike was imposed in October 2014.

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