RailEnquiry

Centre's move adds fuel to fire in this inflationary situation, says CM

Terming the 15 per cent hike in railway freight charges, which will come into effect from Octotber 1 “unfair”, chief minister J.
Jayalalithaa has urged the Centre to withdraw the hike in view of the present conditions of rising inflation.

She said the Centre’s move to hike the railway freight was “like adding fuel to fire ” as it had come against the backdrop of spiralling cost of essential commodities triggered by frequent hike in the prices of petroleum products.

“When the railway freight movement is uniform throughout the year, classifying the nine-month period from October-June as busy season artificially and charging busy season rates is unfair,” Ms Jayal

alithaa said. She said the Railways under its dynamic pricing policy has classified July-September as lean season and October-June as a busy season. The freight rates were higher during the busy season.
She stated that during the period from April to June 2011, the Centre had raised the freight charges for coal by five per cent and seven per cent for

other products. “From October 2011 to June 2012, the freight charges for all products were hiked by ten per cent and from October 2012 to June 2013, the Centre had the freight charges for food grains and chemical fertilisers fixed at ten per cent each and 12 per cent for other products for the busy season,” the chief minister said and added that this was proposed to be hiked further by 15 per cent from October 1.
As a result of this hike, there will be an all-round increase in the prices of essential commodities and also in the raw material prices for factories resulting in higher inflation. Further, this would hurt the people and the economy rather than stabilising it, she said flaying the Centre for its decision to enhance the charges.