New Delhi: Railways on Tuesday withdrew four percent exemption on fertiliser and foodgrain loading rates ahead of Rail Budget.
In 2010, Railways has increased freight rate by four percent on some key commodities such as sugar and some petroleum products to meet rising fuel cost and higher wages. However, foodgrains and fertilisers were exempted from the increase by the national tranporter.
The exemption was withdrawn as part of rationalising the freight rate, according to a railway notification.
However railways claimed that this increase will not impact the common man as the burden will be abosorbed by government agencies like FCI which are primary customers of the national transporter.
Meanwhile, Railways have reduced the freight rate of iron ore meant for exports by 16 percent.
The new freight rate of iron ore is reduced by Rs 475 per tone and is now fixed at Rs 2,425 rupees per tonne.
According to a railway notification, the new rate is applicable from March 5.
India is one of the world's biggest exporters of iron and it accounts for 15 percent of railway freight earnings.
There was a dip in iron ore loadings in the current fiscal as there was ban on illegal mining in Orissa and Karnataka.