The Cement Manufacturers Association (CMA) of India has urged the Railway Board to withdraw the 6.5 per cent rail freight hike, claiming that the cement industry cannot absorb the additional burden of INR100/t (US$1.7) that the hike will bring.

CMA representatives told the Railway Board that the 6.5 per cent hike, scheduled to come into effect on 25 June, would further discourage movement of cement and input materials by rail.

“In the last two-and-a-half-years, the overall transportation cost of cement has gone up by 40 per cent.  With the current 6.5 per cent increase in the freight rates, the additional average burden on cement industry will be about INR100/t,” a CMA spokesperson said.