Rail Budget: Freight Rate Hike May Push Up Commodity Prices

New Delhi: Cement, coal, steel and urea prices are likely to go up with the Railways Minister proposing a freight hike of up to 10 per cent for various commodities.

The Railway Budget proposals, presented by Railway Minister Suresh Prabhu in Parliament on Thursday, proposed to hike freight rates for 12 commodities in the range of 0.8 per cent to 10 per cent.

The proposed hike for cement, coal, iron and steel, grains and pulses, urea, groundnut oil, LPG and kerosene is 2.7 per cent, 6.3 per cent, 0.8 per cent, 10 per cent, 10 per cent, 2.1 per cent, 0.8 per cent and 0.8 per cent, respectively.

However, for limestone, dolomite and manganese, and speed diesel oil the rates have been reduced by 0.3 per cent and 1 per cent, respectively.