Railways hike parcel rates by 25%

Two months after hiking the freight, railways have increased the parcel and luggage rates by 25 per cent on all goods with immediate effect, in a move that is expected to add to the inflationary situation.

With the action, railways aims to mop up Rs 370 crore as additional revenue in the current fiscal. Railways have earned Rs 1600 crore from parcel and luggage in 2011-12.

"We have revised the rates of parcel and luggage after six years as part of our efforts to rationalise the tariff structure. It has been hiked approximately by 25 per cent for all goods and the new rate is being effective from June 1," said a senior railway ministry official.

The last revision of parcel and luggage rates had taken place in 2006.