Railway Budget: Indian Railways increases freight rates for foodgrains, fertiliser
Indian Railways announced that it is withdrawing a four per cent exemption on loading rates for food and fertiliser.
The Indian Railways on Wednesday announced it is withdrawing a four per cent exemption on fertiliser and foodgrains loading rates and hiking by 10-15 per cent loading rates for other commodities.
The announcement which comes ahead of the Railway Budget on 14 March, will be effective starting 5 March.
In 2010, Indian Railways had increased freight rate by four per cent on some key commodities such as sugar and some petroleum products to meet rising fuel cost and higher wages. However, foodgrains and fertiliser were exempted from the increase.
The exemption was withdrawn as part of rationalising the freight rate, according to a Railways notification.
However, the department claimed that the increase will not impact the common man as the burden will be absorbed by government agencies like Food Corporation of India which are the primary customers of the national transporter.
Railways, however, has reduced the freight rate of iron ore meant for exports by 16 per cent.
The new freight rate of iron ore is reduced by Rs 475 per tonne to Rs 2,425 rupees per tonne.
India is one of the world's biggest exporters of iron and it accounts for 15 per cent of railway freight earnings.
There was a dip in iron ore loadings in the current fiscal following a ban on illegal mining in Odisha and Karnataka.