You are here: Home » Budget » Run-up » Economy
Business Standard

Exporters want iron ore duty abolished

In pre-budget submission, say the high export duty is impacting earnings

Dilip Kumar Jha  |  Mumbai 

Iron ore exporters have asked the government to abolish export duty on low grade fines, which are not used in domestic steel mills.

In a pre-sumission to the finance minister Arun Jaitley, iron ore exporters' association said, "Iron ore fines are hardly consumed by domestic steel mills. Such ore is used normally as landfills resulting into huge loss in foreign exchange earnings."

Earlier, these fines were sold to Chinese steel mills, but this become unviable because of the 30% export duty.

Read our full coverage on Union Budget

"Abolishing this duty will help earn huge forex eaenings," said the association in the submission.

The prevailing high duty makes Indian ore costlier than even Australian and Brazilian ore.

Industry sources said there is a huge stock of low grade ore lying at India's easrern coasts.

In the pre-mining ban era in 2012, Indian exporters were shipping over 100 million tonne of ore largely to China.

The Federation of Indian Minerals Industries (FIMI) secretary general R K Sharma said the duty is not needed and should be abolished from all categories of iron ore.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, February 02 2015. 12:43 IST