Rail freight hike seen hitting iron ore exports
30 Mar 2010
A hike in the busy season freight rates by the Indian Railways has not only pushed up soaring prices further, but has also affected the country's exports badly, say traders and exporters.
The Indian Railways on Monday announced an increase in freight rates between 5 and seven per cent beginning 1 April on all commodities - the second time in just over a fortnight.
The Railways said it would have to raise freight rates by 5 per tonne of coal and 7 per cent on all other commodities.
The new rates will be effective during the two busy seasons that run from 1 April to 30 June and from 1 October to 31 March, the railway ministry said.
The Railways increased freight charges by Rs100 ($2.22) a tonne for iron ore meant for exports on the back of a Rs300 per tonne hike on 17 March.
The unexpected hike in freight rates has taken away India's edge in iron ore exports against rivals like Brazil and Australia, exporters say.
.webp)
