Domestic Steel industry is criticizing the National Mineral Development Corporation (NMDC) for its iron ore pricing policy, pointing out that the government-owned company is exporting iron ore to Japan at a lower rate than its domestic sale price.

Anil Nachrani, president of Chhattisgarh Sponge Iron Manufactures Association, said that domestic steel industry was struggling for existence while the public sector mining giant was supplying iron ore to foreign countries.

Criticizing NMDC's pricing policy, Nachrani said, "Domestic Steel industry is struggling for existence but NMDC is exporting the iron ore to Japan, that too at much lower price. We smell a rat in this NMDC-Japan pricing deal."

He alleged that NMDC-Japan pricing deal was signed under the pressure from the Ministry of Commerce, which wanted to maintain good bi-lateral relations with Japan.

He said NMDC is supplying iron ore to Japan at a rate of less than Rs 2000 per metric ton, where domestic consumers are being forced to pay Rs 5370 for the same. He also alleged that private mine owners as well as public sector ore miner were taking advantage of shortage of iron ore.

Nachrani warned that as many as 300 sponge iron manufacturing facilities, including 100 facilities in Chhattisgarh alone, were struggling for existence, and many of them could close anytime due to declining pricing of steel and iron and increasing prices of input cost of iron ore.