Govt killed ore trade, immediate steps needed for rescue: FIMI

Alarmed by the continuous slide in exports of iron ore, miners body FIMI has accused the government of "killing" India's ore trade and sought immediate steps for its revival.
Apprehending a sharp fall in exports of the key steel-making raw material this fiscal too, the Federation of Indian Mineral Industries (FIMI) has said ore units are on the verge of closure.
The allegations come in the wake of India's top 12 major ports witnessing a sharp 38 per cent decline in ore handling to only about 8 million tonnes (mt) in April-December of the current fiscal, which includes domestic movement of cargo.

"India is the only country in the world which has killed its flourishing iron ore trade, which has deprived the country of huge foreign exchange on the plea that the domestic industry is not hurt," FIMI Secretary General R K Sharma told PTI.
"The trends show that exports will decline hugely this fiscal. In 2014-15, exports stood at 6.12 mt," Sharma said, pitching for "immediate measures like removal of export duty on iron ore fines as well as lumps".
Mineral ore exporter bodies have already sought Prime Minister Narendra Modi's intervention for removal of export duty on iron ore, saying it will help in higher revenues of USD 750 million a year.

Besides, industry body GMOEA has written to the Prime Minister's Office urging it to remove the 10 per cent export duty on iron ore fines with Fe content below 58 per cent and the 30 per cent export duty on iron ore lumps, irrespective of the grade.

"Today, there is no domestic demand for iron ore, exports are minimal and mining units are on the verge of closure," Sharma said, expressing concerns that "it may lead to huge unemployment".
The government recently reduced export duty on iron ore pellets to zero from 5 per cent.
In 2014, the government had gone for a 5 per cent export duty on iron ore pellets -- which are value-added products of leftover material or low-grade iron ore and used in steel-making.

Iron ore pellet makers as well as a few miners had earlier sought a reduction in export duty on iron ore to make it more competitive.