New Delhi | Oct 3, 2016: After the steel ministry, it's the turn of the mines ministry to say it does not favour export duty cut on iron ore, a key ingredient in making steel.
Mines Secretary Balvinder Kumar today said there is "no convincing" argument for reducing export duty on iron ore (with Fe content above 58 per cent) from 30 per cent.
"No convincing case for reduction of export duty of iron ore," Kumar said at the annual conference of industry body Federation of Indian Mineral Industries (FIMI) here.
The mining industry has been pushing for a reduction in export duty of iron ore with Fe content of over 58 per cent, saying there is already a huge stock of unsold ore lying in Odisha and Chhattisgarh with no domestic buyers.
He further said: "Though 5-6 months back, the ministry was convinced that export duty should be reduced, but now the export prices have risen and simultaneously, exports have increased very substantially."
Quoting figures to support his views, he said iron ore exports in 2015-16 stood at 5.32 million tonnes (mt) while it was 5.29 mt in April-July of 2016.
Besides, production too has gone up by 32 per cent. Imports in the last fiscal stood at about 7 mt, but in the first five months, these stood at only 1 mt. So, effectively, exports have increased and imports have come down, he added.
Last month, Steel Secretary Aruna Sharma had said: "We are not in favour of reducing the export duty on higher grade of iron ore from 30 per cent."
The mining industry feels that reducing export duty will make iron ore viable to sell in the global market and estimates that around 85 million tonnes of the ore are lying unsold.
On the other hand, domestic steel producers are pitching against the reduction in export duty, calling for preserving the natural resource for domestic use.
In the budget 2016-17, the government removed the export duty on low grade iron ore fines and lumps (Fe content below 58 per cent) in a bid to make the domestic mining sector, particularly in Goa, competitive amid a fall in prices globally.
(Source: http://timesofindia.indiatimes.com/)