NEW DELHI: Owing to the decline in economic activity during the first two months of the fiscal year 2020-21 (FY21), rail freight traffic in April and May dropped by 28 per cent, or 58 million tonne (mt), to 148 MT, compared to 206 mt during the same period last year.

Among the commodities, coal was the worst-hit, with the sector contributing 60 per cent to the total decline. Out of the total decline of 58 mt, Coal freight traffic alone saw a decline of 35 MT.

In April-May, coal loading was seen at 71 mt, compared to 106 mt during the first two months of FY20.

Freight earnings too saw a decline of Rs 8,284 crore to Rs 13,412 crore in the first two months of FY21, compared to Rs 21,696 crore during the same period last year.

The earnings from the coal sector saw a decline of Rs 5,313 crore to Rs 5,720 crore, compared to Rs 11,033 crore in the corresponding period last fiscal year.

The decline in coal freight traffic is mainly because of a fall in power demand. State-run Coal India (CIL) saw its sales falling by 23 per cent in May and 26 per cent in April as power utilities purchased less coal because of a fall in demand and higher stockpile.