Indian railways have hiked freight rates by an effective 6% on all commodities including Iron ore.
This move will cost Indian exporters an extra $3-4 per tonne. Export markets under going a bad phase and this hike will add on more burden on the Indian exporters. Spot prices in China have fallen by 12% in last 15 days due to global economic slowdown and expected to fall more in near.
This move is not welcomed by the FIMI (Federation of Indian Minnerals). “Indian railways should reduce surcharge on exports of Iron ore and should focus on increase in quantity. Hiking freight charges will not solve the problem .”said an official.
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