India – Courier services becoming dearer

Sending packets through private courier companies could get expensive, with the Government proposing to stipulate higher tariffs for mails less than 150 gm.

The draft Postal Bill, which is expected to be tabled in the ongoing Budget session, has proposed to impose a tariff on mails carried by courier companies that is fives times the charge taken by the Postal Department.

So, while a 20 gm mail is charged Rs 5 by the post offices, the same will cost Rs 25 if you send it through a private courier. The rationale for the differential tariff is that the Government is giving up its monopoly on low-weight mails.

While the earlier draft of Postal Bill had completely barred private courier companies from carrying packets weighing more than 300 gm, the revised proposal removes this ban but on the other hand imposes a higher tariff rate for packets that weigh less than 150 gm.

This means that consumers could cough up as much as Rs 200 for sending a packet weighing 140-150 gm through private courier companies even as the post office will charge only Rs 40.

Currently, charges taken by courier companies are not regulated. According to Government sources, a number of countries follow such differential tariffing wherever the Postal Department gives up its monopoly.

For instance, in Germany, private courier companies have to charge two-and-a-half times the price fixed by Deutsche Post for packets weighing up to 50 g.

In Australia, courier firms have to charge four times the price fixed by Australia Post Corporation for letters up to 250 gm.

In the speed post and registered post segments, private companies will have to charge two-and-a-half times the fees charges by the Postal Department.

So, if you want to send a 200 gm packet to a destination 2,000 km away through private speed post, it will cost you Rs 125 compared to Rs 50 by the Postal Department.