Karnataka lorry owners halt food grain transportation over unpaid dues

Mangalore Today News Network

Bengaluru, July 7, 2025: The Karnataka government is grappling with yet another financial crisis, as the Federation of Karnataka State Lorry Owners and Agents’ Association has announced a complete halt in the transportation of rice and food grains meant for the Anna Bhagya Scheme. The decision comes in protest against non-payment of dues for the past six months.

Federation president GR Shanmugappa, has claimed that lorry operators have not been paid since February for transporting food grains to ration shops under the Anna Bhagya Schemes one of the state’s flagship guarantees.

"We have reached a breaking point. Some of us are mortgaging jewellery to fill diesel. We are in deep financial distress and can’t continue like this anymore," Mr Shanmugappa said.

Starting 9 am today, the association has suspended all grain loading operations across the state. Mr Shanmugappa added that lorry owners who had participated in the government’s tender process had each deposited 4 lakh rupees as Earnest Money Deposit (EMD), which is yet to be refunded adding up to nearly 25-30 crores.

"Despite assurances given during a meeting with government officials on June 19, that payments would be cleared before July 5, nothing has happened. We have no option left but to stop all movement until our dues are paid and our loans cleared," he added. The association has appealed to the Chief Minister and Deputy Chief Minister to understand their plight.

This development comes just a day after the Chief Minister’s economic advisor, Raya Reddy, stirred controversy by stating that people must choose between guarantee schemes and development projects due to budget constraints.

"If you want an asphalt road or a school, understand that everything can’t be done at once. You must decide. If you say, ’build roads’, we’ll build roads. If you say, ’build temples’, we’ll build only temples. We must manage within the funds available," Mr Reddy had said.

With the lorry owners’ strike threatening to disrupt the supply chain for the Anna Bhagya scheme, the government now faces mounting pressure to address the issue.