Rail Budget 2015: Freight rate hike may push up commodity prices
Cement, coal, steel and urea prices likely to go up with freight hike up to 10 per cent
New Delhi: Cement, coal, steel and urea prices are likely to go up with the Railways Minister proposing freight hike up to 10 per cent for various commodities. The railway budget proposals, presented by Railway Minister Suresh Prabhu in Parliament on February 26, proposed to hike freight rates for 12 commodities in the range of 0.8 per cent to 10 per cent.
The proposed hike for cement, coal, iron and steel, grains & pulses, urea, groundnut oil, LPG and kerosene is 2.7 per cent, 6.3 per cent, 0.8 per cent, 10 per cent, 10 per cent, 2.1 per cent, 0.8 per cent and 0.8 per cent respectively. However, for limestone, dolomite & manganese and speed diesel oil the rates have been reduced by 0.3 per cent and 1 per cent respectively. The Railways Minister has also raised the base freight rates by up to 10 per cent.