Price hike
As per a circular issued by the Railway Board on October 12, 2011, freight prices of all commodities have been hiked by 10%. This hike comes after an increase in freight charges levied in March this year.
According to S Sarkar, proprietor of Sda Forwarders, a small-sized freight forwarding company in Kolkata, “There is not much that the Indian Railways or traders can do, since they have to also ensure that they are not incurring any losses. As prices have gone up, consumers will have to bear with the situation till the inflation rate tames down a little.”
However, the hike in freight rates has not been done on a permanent basis. The Railway Board circular says that the increased rate will be applicable till June 2012.
Sudhin Shekhawat, a Mumbai-based professional who travels by train, said, “Even while ensuring comfort for the common people, the government must ensure that any of its moves does not hurt traders and consumers.”
According to the Railway Ministry, rising operating costs is a major reason for the hike. The Ministry’s reserves are dwindling, dipping to Rs 75 lakh at present from Rs 13,000 crore in 2008. Given this huge drop, it is necessary to uplift the sector at the earliest.
Prasenjit Das |
Even as the high inflation rate is bothering the country, especially the consumers, who have to shell out more for commodity prices, a latest move by the Indian Railways may further aggravate their agony. The Railways has decided to increase its freight charges to offset its mounting losses to some extent. However, people will have to bear the cascading effect of this move, since traders who transport food grain, fertilisers, cement, iron ore and coal, among other items, on trains are likely to pass on their additional cost on transport to consumers.
