The proposed 15 per cent hike in railway freight rates from Oct 1 has drawn flak from the small and medium industrial units here who fear that they would be priced out of competition.
In a statement, J.James, Coimbatore District President of Tamil Nadu Association of Cottage and Micro Enterprises (TACT), said at a time when the regular hike in fuel prices had cast a huge burden on the people, the announcement of 15 per cent hike in railway freight rates threatens to push the industrial units into a greater crisis.
He said the industries in Coimbatore region had to transport the raw materials from the North at a huge cost to manufacture goods that were sent to the consuming centres by rail.
If the freight rates were increased by 15 per cent from Oct 1, the manufacturers in the Southern states, who were already losing orders to their competitors in the North, would be priced out due to higher cost.
James said already people were groaning under the burden of relentless cost increase due to spiralling inflation and the latest decision would affect the business of industries located in the Southern states and push the workers greater job losses.
He urged the railways to drop the move so as to save jobs and prevent further price increase.