Rail Budget 2013: 5% hike in freight cost to hard hit Northeast India

GUWAHATI: The freight charge hike of 5 percent in the railway budget, 2013-14 will hard hit the Northeast India as the region heavily depends on railways for getting the supply of essential commodities. Prices of several commodities including Cement and Steal are likely to go up as transportation will become costlier.

Nearly 66 percent of the essential goods of Northeast India come through railways while 30 percent come through roadways. Waterways accounts for three percent and one percent comes in airways.

Chairman R.S.Joshi of Federation of Industries for Northeast Region (FINER) said freight increase will fuel inflationary pressure. "Northeast India is hugely dependent on railways for getting its stock of essential items. However such increase will make several items costlier here."