RailEnquiry

COIMBATORE: Apprehensive about the proposed 15% hike in railway freight tariff from October 1, representatives from various industries in Coimbatore feel that the burden will be too much for them to bear. "The hike has come at a most inopportune time when the entire industrial scenario is down due to factors such as economic slowdown and lack of orders," Coimbatore District Small Industries Association (CODISSIA) president R Ramachandran said. Since industries in the region are going through one of the most difficult times, he urged the government to reverse the proposal."Diesel prices are being hiked on a regular basis and the proposed hike in railway freight tariff will be damaging to industry," he said. Industries are finding it difficult to work out the costs for their products due to these factors. According to him, the proposed hike is contrary to the efforts taken by the same government to implement various measures to boost the growth of MSMEs in the country. "Under these circumstances, chances for cost-cutting seem to be remote and ultimately the added costs are transferred to the consumers," he added.Representatives from MSMEs say that the proposed hike has come as a rude shock to them. "Government has now pushed us into yet another crisis and it will be difficult for the MSMEs to stay competitive," district president of Tamil Nadu Association of Cottage and Micro Enterprises (TACT) J James said. Manufacturers here are mostly dependent on rail for transporting raw materials from northern states to Coimbatore and sending the finished goods to various markets.

"We are already struggling to compete against products made in northern states due to price difference and the proposed hike will have a telling effect on MSMEs here," said James. At a time when the price rise of most products affect the common man, it is feared that the proposed hike in railway freight tariff is expected to result in further increase in prices of commodities. "Such revision of tariff should be announced only in the railway budget and this is not a healthy trend," said K Kathirmathiyon, secretary of Coimbatore Consumer Cause.

The railways has started to revise tariff along the lines of oil companies that hike the prices of fuels regularly. "What is the need for the railway budget when the railways are taking liberty to revise the tariff during the financial year?," he questioned.