Railway Freight and Inflation

Railway Tariffs and Inflation

By: Amit Bhushan Date: 22nd June 2014

The politics on Tariff has reached almost its zenith with trigger on freight and passenger increase by the government. The political past of the ruling party is being encashed by rivals and this is hallmark of India democracy where politicians of all hues and colour make statements without sense when not in power to rake up ‘public support’ which they feel goes to leaders who talk nonsense rather than going to ones talking sense. The case of the past PM and intellectuals losing Lok Sabha elections is cited as example without making any efforts to count service delivery be such intellectuals to their constituents. As if ordinary public should not expect any services from intellectuals and must vote on self promotion efforts of intellectuals alone; and if such people change constituency then commitments should be forgotten. This is because the government and the babu-dom and ministers or busy combating the circumstances rather than think in a wholesome manner about solutions including socio-political and economic angles. In such thinking, it is easy to succumb to circumstances which are likely to happen sooner or later while public good remains back stage and so the party in power has potential to loose.

We have circumstances where Food inflation is cause of problem while Food wastage from ‘Farm to Fork’ is adjudges to be relatively high. We also have situation where freight cost by road is at least 40% higher than freight cost by rail and is full of additional bureaucratic tyranny from traffic inspectors to chungi inspectors and state border and tax management; which is delay as well as cost meaning lower revenue to producer/trader. If these challenges are thought in toto, then instead of looking at voices in media generally pushing for public conveniences in railways in lieu of increased tariffs, the minister and government will be pushed to create a ‘Railway Liner’ service between major cities. As far as media and political parties are concerned, in India the business is about noise and agitation crowd potential; rather than offering better ideas/solutions. So common man’s attitude about being vocal of what is apparent but being silent about the latent (even though the latent is where solution may be hidden); is mass media and politician’s approach.

Such Liner between say Kolkata and Delhi may have 25 to 30% Freezer containers and rest normal containers with at least 75% of the train reserved for Perishable commodities. The Liner can have the VIP treatment of an Express train so that it runs on schedule and covers the journey in not more than 24 hours. This will be a huge boost to the agri-zones in between these cities which lie nearby the line, especially the loading/unloading points. This would also have impact on politics, which plays ruthlessly with logistic services. This is because currently train stoppage has limited damage of receiving the woes of a few passengers but has a major scoring coup in public perception. But if ordinary farmers are dependent on Railways, then it will be very difficult for politicians to stop the Railways without burning hands significantly amongst farmers whose season’s earnings will be at stakes.

Such service has direct consequence of reducing inflation in the cities due to game-changing impact. However, if the government concerned continues to persist with old ways, then the tariff increase can only be suicidal. The Game changer is delivered by making farm goods reach to consumption centers more cheaply, even with increasing tariff by getting load of politically significant food products from road to rail. Such trains may be planned from Delhi to Mumbai, Mumbai to Chennai, Kolkata to Chennai and Delhi to Chennai to and fro. It may also require adjusting frequency of a few Passenger trains for the greater good of people as well as railways in the short to medium run. The plan fails if not backed with adequate support/promotion measures to have near term significant impact or with corrupt railway officials collude with unscrupulous elements in market that corner Freight service bookings and start black marketing.

It would require railways to put up capacity in the route for an additional rail, increase demand for containers as well as container carrying coaches including freezer containers, load handling infrastructure. It is likely to have tremendous impact on large population in the major cities that lie in between with potential to cool down inflation. Some Truck companies and road related services will need to relook at their expansion plans but that’s part of the game.

The idea in the article is nothing new and has been conceived earlier as well. However, it is one of those ideas which have not been implemented due to lack of ‘political will’. The ‘ideas’, ‘political will’ and ‘ability to get the bureaucracy moving’ in the present government is at test. Let’s watch what is forthcoming…

 

[Swaswati Borpuzari]

In the ever-evolving landscape of modern society, reforms in various sectors play a crucial role in shaping the future of industries, influencing stakeholders, and impacting the lives of people. These reforms, whether they are economic, regulatory, or technological, are designed to address inefficiencies, promote growth, and enhance the well-being of the population. For instance, in the manufacturing sector, the introduction of automation and advanced robotics has not only increased productivity and reduced costs but has also necessitated a re-skilling of the workforce to adapt to new technologies. This shift has profound implications for stakeholders, including business owners, employees, and consumers. Business owners benefit from higher efficiency and lower labor costs, while employees must adapt to new roles or face the risk of redundancy. Consumers, on the other hand, often enjoy lower prices and higher quality products. However, the success of such reforms hinges on the effective engagement of all stakeholders, ensuring that the changes are inclusive and that the benefits are shared equitably. Governments and industry leaders must work together to implement policies that support workers during transitions, such as offering training programs and social safety nets, to mitigate the potential negative effects on the workforce. Ultimately, the goal of these reforms is to create a more resilient and dynamic economic environment that not only drives industrial growth but also enhances the quality of life for all people involved.

 

[Dhruv Bindhani]

Railway Tariffs and Inflation

By: Amit Bhushan Date: 22nd June 2014

The politics on Tariff has reached almost its zenith with trigger on freight and passenger increase by the government. The political past of the ruling party is being encashed by rivals and this is hallmark of India democracy where politicians of all hues and colour make statements without sense when not in power to rake up ‘public support’ which they feel goes to leaders who talk nonsense rather than going to ones talking sense. The case of the past PM and intellectuals losing Lok Sabha elections is cited as example without making any efforts to count service delivery be such intellectuals to their constituents. As if ordinary public should not expect any services from intellectuals and must vote on self promotion efforts of intellectuals alone; and if such people change constituency then commitments should be forgotten. This is because the government and the babu-dom and ministers or busy combating the circumstances rather than think in a wholesome manner about solutions including socio-political and economic angles. In such thinking, it is easy to succumb to circumstances which are likely to happen sooner or later while public good remains back stage and so the party in power has potential to loose.

We have circumstances where Food inflation is cause of problem while Food wastage from ‘Farm to Fork’ is adjudges to be relatively high. We also have situation where freight cost by road is at least 40% higher than freight cost by rail and is full of additional bureaucratic tyranny from traffic inspectors to chungi inspectors and state border and tax management; which is delay as well as cost meaning lower revenue to producer/trader. If these challenges are thought in toto, then instead of looking at voices in media generally pushing for public conveniences in railways in lieu of increased tariffs, the minister and government will be pushed to create a ‘Railway Liner’ service between major cities. As far as media and political parties are concerned, in India the business is about noise and agitation crowd potential; rather than offering better ideas/solutions. So common man’s attitude about being vocal of what is apparent but being silent about the latent (even though the latent is where solution may be hidden); is mass media and politician’s approach.

Such Liner between say Kolkata and Delhi may have 25 to 30% Freezer containers and rest normal containers with at least 75% of the train reserved for Perishable commodities. The Liner can have the VIP treatment of an Express train so that it runs on schedule and covers the journey in not more than 24 hours. This will be a huge boost to the agri-zones in between these cities which lie nearby the line, especially the loading/unloading points. This would also have impact on politics, which plays ruthlessly with logistic services. This is because currently train stoppage has limited damage of receiving the woes of a few passengers but has a major scoring coup in public perception. But if ordinary farmers are dependent on Railways, then it will be very difficult for politicians to stop the Railways without burning hands significantly amongst farmers whose season’s earnings will be at stakes.

Such service has direct consequence of reducing inflation in the cities due to game-changing impact. However, if the government concerned continues to persist with old ways, then the tariff increase can only be suicidal. The Game changer is delivered by making farm goods reach to consumption centers more cheaply, even with increasing tariff by getting load of politically significant food products from road to rail. Such trains may be planned from Delhi to Mumbai, Mumbai to Chennai, Kolkata to Chennai and Delhi to Chennai to and fro. It may also require adjusting frequency of a few Passenger trains for the greater good of people as well as railways in the short to medium run. The plan fails if not backed with adequate support/promotion measures to have near term significant impact or with corrupt railway officials collude with unscrupulous elements in market that corner Freight service bookings and start black marketing.

It would require railways to put up capacity in the route for an additional rail, increase demand for containers as well as container carrying coaches including freezer containers, load handling infrastructure. It is likely to have tremendous impact on large population in the major cities that lie in between with potential to cool down inflation. Some Truck companies and road related services will need to relook at their expansion plans but that’s part of the game.

The idea in the article is nothing new and has been conceived earlier as well. However, it is one of those ideas which have not been implemented due to lack of ‘political will’. The ‘ideas’, ‘political will’ and ‘ability to get the bureaucracy moving’ in the present government is at test. Let’s watch what is forthcoming…

This political article is a masterclass in persuasive communication. The writer's writing style is remarkably incisive and authoritative, cutting through complex issues with clarity and conviction. There's a palpable sense of purpose in every sentence, driving the argument forward with intellectual rigor. The structure of the piece is strategically designed to build a compelling case, carefully introducing evidence and counterpoints in a way that maximizes their impact. Each section contributes meaningfully to the overall narrative, leading the reader towards a well-reasoned conclusion. Critically, the clarity with which the political landscape and proposed solutions are articulated is exemplary, leaving no ambiguity about the writer's stance or the implications of their analysis. This is not just reporting; it's a powerful and accessible contribution to public discourse.