National Mineral Development Corporation (NMDC) has decided to hike iron ore prices up to 40 per cent. NMDC is a leading state-run mining company in India. The revised prices would be implemented from Oct 1. The decision to hike ore prices is aimed to save the interests of buyers. It would insulate them from short-term market fluctuations. The steel prices may increase following the implementation of revised prices.

The chairman and Managing Director of NMDC, Rana Som said that the hike in prices is the need of the hour as production cost has increased manifolds. The public sector company can revise the ore prices as per the agreement with buyers.

Steel Secretary, Pramod Kumar Rastogi said that the comapny has a right to revise prices at any time. The prices of ore lump would cost about Rs 3,500 while currently it is available for Rs 2,500 while ore fine would be available for Rs 1,970 instead of Rs 1,783.

The steel industry, on the other hand, has criticized the price hike. Vice Chairman and Managing Director of Ispat industries, Vinod Mittal said that producers are unilaterally trying to control the price which is very unfair.