Rail freight rises 9% to 141 mt in July on higher coal, iron ore loading

Indian Railways reported strong freight growth in July, supported by higher movement of coal, iron ore, fertilisers and foodgrains, while passenger traffic also increased.

Indian Railways registered a 9 per cent growth in its freight volumes in July, with double-digit growth across key commodities such as coal, iron ore, fertilisers and foodgrains.

 

The national transporter ferried 141.3 million tonnes (mt) of goods in July 2026, compared with 129.7 mt in July last year, according to a statement issued by the Ministry of Railways.

 

Commodities such as coal and iron ore account for more than 60 per cent of the national transporter’s freight basket.

 

“Several major commodity groups recorded healthy year-on-year growth during July 2026. Iron ore loading increased by 22.2 per cent, coal by 11.5 per cent, foodgrains by 11.5 per cent, fertilisers by 12 per cent, and balance other goods by 12.1 per cent, reflecting strong demand from infrastructure, manufacturing and agricultural sectors,” the ministry said.

 

 

While the Railways did not provide an official figure for cumulative freight volumes in FY27 up to July, calculations based on individual monthly data suggest cumulative freight volume growth of 3.2 per cent, with approximately 560 mt of goods transported.

 

Experts said the ongoing monsoon deficit in several parts of India, especially coal- and mineral-rich states in the northern belt, may have allowed routine production and mining operations to continue. This, in turn, would have supported higher industrial output in mining-linked core sectors, said a former senior Railways official.

 

“With the increase in coal demand at thermal power plants, Indian Railways stepped up domestic coal supply to power plants by 20 per cent in July compared with the corresponding month last year,” the Railways said.

 

Rainfall during July typically leads to a sequential dip in rail freight volumes because of production disruptions.

 

In July 2025, freight volumes had fallen to 129.7 mt from more than 136 mt in June 2025. In FY27, freight volumes in July also declined sequentially, albeit marginally, from 142.7 mt in June to 141.3 mt.

 

The increase in freight movement resulted in incremental freight revenue of ₹1,137 crore over July 2025, registering 8 per cent growth, the Railways said.

 

“Among the zonal railways, East Central Railway (33 per cent), Eastern Railway (33 per cent), West Central Railway (23 per cent), and South Eastern Railway (10.33 per cent) recorded notable growth in freight revenue,” the Railways said.

 

The South Eastern Railway, which covers several raw material-rich regions, registered 18 per cent growth in steel loading and 17.6 per cent growth in coal loading from Mahanadi Coalfields, the zone said.

 

Detailed commodity-wise freight data was not available at the time of publication.

 

Indian Railways also carried 633.5 million passengers during July, compared with 621.9 million in the corresponding month last year. Passenger traffic continued to grow across both suburban and non-suburban segments, reflecting the growing preference for rail travel across the country, the Railways said.