Railways hike parcel/luggage rates by 25 per cent with immediate effect

Indian Railways, which fought off a revision in passenger fares announced in the Railway Budget in March, today announced a 25 per cent across-the-board increase in luggage and parcel rates, with immediate effect.

Railways expect the increase in luggage and parcel rates to bring in additional revenue of Rs370 crore in the current financial year. This could push up Railway's earnings from luggage and parcel from Rs1,600 reported in 2011-12 to around Rs2,000 crore in 2012-13.

Railways said the last revision of parcel and luggage rates had taken place in 2006 and since then the rates were static.

"We have revised the rates of parcel and luggage after six years as part of our efforts to rationalise the tariff structure. It has been hiked approximately by 25 per cent for all goods and the new rate is being effective from 1 June," said a senior railway ministry official.

Railways have increased some passenger fares in its 2012-13 budget and increased freight rates by 20 per cent.

"Our parcel rates were very low and there has to be some parity between the freight rate and parcel rate," the official said.