Railway freight rates up ahead of budget
06 Mar 2012
The Railways today announced withdrawal of the four per cent exemption on freight rates on fertilizer and foodgrains ahead of the budget due on 14 March.
Railways had, in 2010, increased freight rate by four per cent on some essential commodities such as sugar and petroleum products to meet rising fuel cost and higher wages. However, it had exempted foodgrains and fertilisers from the increase.
The exemption was withdrawn as part of rationalising the freight rate, Railways said in a notification.
Railways, however, say this increase will not impact the common man as the government agencies like FCI will absorb the entire burden.
However, Railways have reduced the freight rate for iron ore meant for exports by 16 per cent.
The revised rate cuts freight cost of iron ore by Rs475 per tonne to Rs2,425 per tonne.