The eight-day bus strike in Kerala was called off on Monday night after the unions of bus owners agreed to the government's assurance that a decision on fare hike would be taken before September 1, official sources said.

Kerala State Bus Operators Association president Khalid Mundappally said after the final round of talks at Forest Minister K Sudhakaran's residence that the government also agreed to consider the other demands of the owners in fresh talks to be held on August 11.

The operators' main demand is to peg minimum fare at Rs 3.50 and an increase of 20 paise per km from the prevailing 35 paise.

Mundappally, however, regretted that the government rejected their demand for fixing the concession rate for students at 50 per cent of the fares.