The Indian railways has announced in increase of between 10-15 per cent on loading charges for several commodities.

It also scrapped a four per cent exemption on loading charges for fertilizer and foodgrains. The new rates will take effect starting 5 March. The department had increased freight rate by four per cent on some commodities in 2010 to meet rising fuel cost and higher wages but had exempted food-grains and fertilizers from the increase.

According to a railway notification, the increase in rates is a part of rationalizing the freight rates. The department pointed out that the increase will not affect the common man as the burden will be taken by government agencies like Food Corporation of India, which as the main customers for railway freight.

The department also said that it is decreasing the freight on iron ore meant for exports to Rs 2,425 rupees per tonne, a decrease of 16 per cent. Iron ore accounts for 15 per cent of railway freight earnings.

The Indian railways is expected to generate Rs. 70,000 crore from freight earnings in the current fiscal and the increase could help it generate additional Rs. 18,000 crore annually.