Export duty on iron ore may again go up

Steel Minister Beni Prasad Verma said the duty on iron ore might be raised again, to discourage exports.

“We have increased the export duty from five per cent to 20 per cent. We may increase it further,” he said in response to a question in Parliament on the subject. The rise had been made in the current financial year’s budget announcement, despite warnings from mining firms about a spur to commodity prices.

Verma said around half of what was produced in the past three years had been sent outside the country. The proportion was 49.7 per cent of the 212.9 million tonnes produced in 2008-09, 53.7 per cent of the 218.6 mt output in 2009-10 and 46.9 per cent of the 208.1 mt produced in 2010-11.

On ore supply to government-owned steel makers, Verma said Steel Authority of India met its entire need from captive mines. Other state-owned companies were supplied by NMDC, also a public sector unit.