Rail Budget 2012: Railways hike fertiliser, foodgrains loading rate

NEW DELHI: Railways on Tuesday withdrew four per cent exemption on fertiliser and foodgrain loading rates besides making a 10-15 per cent upward revision of other commodities ahead of Rail Budget.

In 2010, Railways has 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 fertilisers were exempted from the increase by the national transporter.

The exemption was withdrawn as part of rationalising the freight rate, according to a railway notification.


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However railways claimed that this increase will not impact the common man as the burden will be absorbed by government agencies like FCI which are primary customers of the national transporter.

Meanwhile, Railways have 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 tone and is now fixed at Rs 2,425 rupees per tonne.

According to a railway notification, the new rate is applicable from March 5.

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 as there was ban on illegal mining in Odisha and Karnataka.