Railway freights may increase for steel and iron ore in India
Industry reports from India refer to a possibility that the Railways may hike the railway freight rates particularly for commodities of steel iron ore and cement. The expectations that the booming demand will keep the steel and iron ore movement high for both domestic and foreign market for a couple of more years lead to the idea of freight increase. The Railways believe that such freight hike can easily be absorbed by the industry enjoying increased profit margins. The officials also refer to the option of reducing the freight rates back, in case same are found to be too heavy. However, it must be noted that at this stage such freight hike is only a proposal currently under review.