Exports by iron ore sector plunges 70% to Rs 10,372 cr

Exports were higher in 2010-11 at Rs 41,295.86 cr from shipments of 97.66 MT of iron ore

Exports by the iron ore sector have come down by nearly 70% to Rs 10,372 crore in the last fiscal, Steel Minister Beni Prasad Verma said today.

India exported 18.37 million tonnes (MT) of iron ore valued at Rs 10,372 crore in 2012-13 compared to 61.74 MT worth Rs 33,911 crore in 2011-12, Verma said in a written answer in the Rajya Sabha.

India had produced 167.29 MT iron ore in 2011-12 and 135.85 MT in 2012-13. Domestic consumption during these two years were at 110.98 MT and 124.80 MT, respectively.

Exports were, however, much higher in 2010-11 at Rs 41,295.86 crore from shipments of 97.66 MT of iron ore. The domestic production during the year was also higher at 207.16 MT though domestic consumption was less at 105.23 MT.

Interestingly, the value of steel exports went up during these three years from Rs 17,511.40 crore in 2010-11 to Rs 21,399.80 crore in 2011-12 and Rs 25,874.50 crore in 2012-13.

The quantity of exports also inched up to 5.25 MT in the last fiscal compared to 4.59 MT in the previous year and 3.64 MT in 2010-11.

To a question, Verma said profits and turnover of steel companies depend upon a number of factors such as source of raw materials, scale of operation, cost of manpower, etc.

"The production of iron ore in India is in excess of the total estimated domestic consumption by the iron and steel industry," he said.