Indian railways have announced a hike of 6 % on freigh charges for all commodities including Iron ore and Coal.
The hike will have a cascading effect on prices.With increase in transportation cost of commodities like foodgrains, coal, fertilizer and iron ore, traders will pass on the burden to the consumers.
The circular, issued by the Railway Board, shows that freight prices of all commodities have been revised from existing 7% to 10% as busy season charge on the base freight rate.
The hike, which comes into effect from Saturday, follows an increase in freight charges levied in March. The busy season charge will be levied on all commodities except containerized cargo and certain automobile traffic, and is likely to continue till June 30, 2012. The poor financial condition and rising operating cost has forced railways to amend its earlier decision taken in March.
In March, railways had levied a busy season charge of 5% on coke and coke group and 7% on all other commodities between October 2011 and March 2012. Now, the rates have been revised to 10%.
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