India: The Cement Manufacturers Association of India has asked the Railway Board to withdraw a 6.5% rise in freight rates that is due to start on 25 June 2014 on the basis that the cement industry cannot absorb the cost. A note to the board said that the increase would further discourage the movement of cement and input materials by rail for an already beleaguered industry.
"In the last two and a half-years, the overall transportation cost of cement has gone up by 40%. With the current 6.5% increase in the freight rates. The cement industry, reeling under tremendous price pressure with around 100Mt of idle excess capacity, cannot absorb this increase," said the note.