Lalu urged not to alter soymeal transport norms

Soyabean Processors Association of India (Sopa) has appealed to the Union railway minister to revoke its decision to increase the minimum weight condition for loading of soymeal in railway wagons.

Sopa chairman Rajesh Agrawal in a memorandum to railway minister Lalu Prasad Yadav said rates of certain goods like soymeal, which the railway fixes according to the carrying capacity of the wagon, were increased in the railway budget. Prior to the budget, the minimum weight condition for soymeal was 50 mt.

This number had been arrived at after number of weight tests that were carried out at different stations by the railway authorities. After these tests, it was notified that up to 50 mt of soymeal could be loaded in a railway wagon of the type of BCNA.

However, the railway authorities, through a circular no 23/2005, dated 24/4/2005, increased the minimum weight condition to 60 mt for BCN and 63 mt for BCNA wagons.

Agrawal argued that soymeal was a commodity, which was lighter than water and had a density of 0.71 grams/cc in pellet form.

Therefore, it wasn't possible to load 60/63 mt of soymeal in a wagon of the type of BCN/BCNA, which can accommodate maximum 50 mt.

Thus, exporters and processors were being forced to pay for the extra 10/13 mt, which were putting additional burden on them.

Agrawal said, "Indian soybean industry had been exporting soymeal to various destinations for the last two decades. During the year 2003-04, the country earned more than Rs 300 crore of foreign exchange through exports. In addition, the industry also contributed Rs 3,500 crore by way of import substitution of edible oils to the domestic edible oil pool. These export orders are secured against stiff competition from USA, Brazil and Argentina. Any slight increase in the cost of inputs, including transportation, may price out Indian exporters of soymeal and processors from the international market."

Agrawal feared that the tariff which the railways is earning through loading of soymeal, might get diverted to road transport in future.

At present, around 60-70 per cent soymeal is transported via railways. The total movement of soymeal last year was around 30 million tonne. Agrawal urged that the carrying capacity (chargeable weight) should remain at 50 mt in the case of soymeal.