Mineral exports from Odisha plunge by 86% in last fiscal

The decline happened due to stringent measures taken both by the state and Central governments to discourage exports and curb illegal mining

The exports of minerals from Odisha has plunged by about 86 per cent to Rs 475.17 crore in 2014-15 compared to Rs 3,546.78 crore clocked in 2013-14.

The mineral exports had declined in the last fiscal compared to 2013-14 due to stringent measures taken both by the state and Central governments to discourage exports and curb illegal mining.

"It is indeed a positive sign as the mine owners are forced to value add products or sell to the local players, which in turn will generate employment in the state. The exports of metallurgical products have zoomed during the fiscal", said a government official.

Exports of metallurgical goods continue to have the lion's share in the export basket. The metallurgical products export has surged to Rs 10,836.98 crore in the last financial year compared to Rs 7,682.25 crore in 2013-14, an increase of 41 per cent.

Odisha accounts for about 93 per cent of chromite and nickel, 52 per cent of bauxite, 44 per cent of manganese, 33 per cent of iron ore and 24 per cent of the coal deposits of the country.

The mining revenue is also the key revenue driver for the state government in the non-tax segment.

The state exported Rs 3,330.73 crore of engineering, chemical and allied products, Rs 1771.86 crore of marine products, Rs 2,567.42 crore of software, Rs 84.09 crore of handloom items, Rs 66.76 crore of handicraft products and Rs 3.34 crore of agriculture and forest products. Other service providers have exported Rs 12.01 crore, according to the provisional data collated by the Directorate of Export Promotion and Marketing.

The state had exported Rs 19,150.88 crore worth of goods and services in the previous year compared to Rs 18,785.45 crore recorded in 2013-14, a meager rise of 1.94 per cent.

The state government last year had approved an enabling policy with the objective to increase the exports from the state more than three fold over the next ten years. The state intends to take it up to Rs 39,000 crore in ten years.