Foodgrain Sector Left Starving

New Delhi, February 26: | Updated: Feb 27 2003, 05:30am hrs
The railway minister has made no major changes in the freight rates for the movement of foodgrain. The rates on sugar too have been untouched and remain steady at 43.41 per cent.

Speaking to FE, Vinay Kumar, managing director of National Sugar Mills Federation said, no change in freight rate is a welcome move for the sugar industry. However the movement will continue to be expensive in the North-Eastern states. Besides, the unchanged freight will work as a disincentive for mills based in North India looking for export prospects. However, the freight rate on molasses has been reduced to 62.01 per cent against 66.14 percent last year. According to SL Jain, director general, Indian Sugar Mills Association, even though there has been a reduction in freight rate for transport of molasses, it will not have much effect on the sugar industry as molasses is transported in tankers by road transport.

The unchanged freight rate of edible oils too is likely to not to affect the edible oil industry.