The increase in freight rates by the Union Rail Minister in the rail budget is likely to hamper the cement prices. The 5.79% hike in freight charges will increase cement prices by Rs 7 per bag of 50 kg according to analyst. The impact of freight charges will be Rs 13-15 crore per million tone of cement production. With the increase in cement price it will affect industry related to it.
According to the analyst , freight hike is always passed on to the consumer by the cement producers hence manufacturing cost goes up by million tone, the consumers have to dole out more money.