RailEnquiry

Ludhiana:
The increase in the freight charges is giving tough times to the local industry as steel prices have gone up by 5-8 per cent. Rail freight charges on the movement of iron ore as well as finished steel have been increased. The prices of several other commodities like cement have also gone up with transportation getting costlier.Nearly 66 per cent of the essential goods required by the North-East is transported through railways and 30 per cent through roadways. "It is a double blow to us. The freight rates for the domestic movement of both iron ore and finished steel have been increased. The steel companies are left with no other option but to increase their prices," said Abishek Syal, an industrialist.Vinod Thapar, chairman of the Knitwear Club, said: "The increase in the freight rates has led to more inflationary pressure. the North-East is hugely dependent on the Railways for getting its stock of essential items".

The prices of steel keep fluctuating. The increase in the fright charges has proved to be a doubly whammy for us. The local industry is dependent on the Railways for transportation and the industry is bearing the brunt of the hike, said Satish Khanna, owner of an induction furnace unit.

The industrialists indicated that it would make the industry further uncompetitive and the local products would become costlier than those manufactured in the coastal states.

Karan Juneja, a garment manufacturer, said: "Punjab is a net exporter with the state selling around 80 per cent of its products to other states. This increase in the freight rates will prove to be a hindrance to exports from Punjab, as the state is far away from the coast".

Another exporter said: "Things are going from bad to worse and it is becoming very difficult for the industry to sustain under such circumstances".

Hindrance to state exports

This increase in the freight rates will prove to be a hindrance to exports from Punjab, as the state is far away from the coast.

Karan Juneja, a garment manufacturer