Freight rate hike may push up commodity prices

Cement, coal, steel and urea prices are likely to go up with Railway Minister Suresh Prabhu proposing freight hike up to 10 per cent for various commodities.

The Railway Budget 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 and 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.

Budget 2015: Complete Coverage