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Fimi asks FM to roll back rise in ore duty

BS Reporter  |  Kolkata 

The Federation of Indian Mineral Industries (Fimi) has requested Finance Minister Pranab Mukherjee to roll back the increase in export duty on iron ore.

In the letter, Fimi has pointed that following the announcement of a rise in export duty in the Union Budget 2011-2012, spot prices of Indian iron have plummeted and are hovering at $150 a tonne compared to $160-165 a tonne prior to the presentation of the Budget.

Mukherjee had proposed an increase in export duty to a uniform 20 per cent ad valorem for lumps and fines, against 15 per cent on lumps and five per cent on fines.

Further, the railways had increased freight on the movement of iron ore for exports by Rs 530 a tonne on January 27, 2011 and another Rs 100 a tonne with effect from March 1, 2011.

“The increase in export duty and railway freight has affected the iron ore industry very adversely. The spectre of an increase in export duty every time the Union budget is presented leads to upheaval in the industry,” Fimi secretary general, R K Sharma, wrote in the letter.

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First Published: Wed, March 09 2011. 00:28 IST