Railways have increased the parcel and luggage rates by 25 per cent on all goods with immediate effect. With the action, railways aims to mop up 370 crore rupees as additional revenue in the current fiscal. Railways have earned 1600 crore rupees from parcel and luggage in 2011-12.

The last revision of parcel and luggage rates had taken place in 2006. The new rates are applicable to all goods including newspapers and magazines. Railways have increased the freight by 20 per cent in March.