Rail Budget 2015: Freight rate hike may push up commodity prices

Cement, coal, steel and urea prices are likely to go up with the Railways Minister proposing freight hike up to 10 percent for various commodities.

The railway Budget proposals, presented by Railway Minister Suresh Prabhu in Parliament Today, proposed to hike freight rates for 12 commodities in the range of 0.8 percent to 10 percent.

The proposed hike for cement, coal, iron and steel, grains & pulses, urea, groundnut oil, LPG and kerosene is 2.7 percent, 6.3 percent, 0.8 percent, 10 percent, 10 percent, 2.1 percent, 0.8 percent and 0.8 percent respectively.

However, for limestone, dolomite & manganese and speed diesel oil the rates have been reduced by 0.3 percent and 1 percent respectively. The Railways Minister has also raised the base freight rates by up to 10 percent.