The long running issue of export duty on iron is again in the limelight, since the steel and mine Union Ministries are opposing each other with their viewpoints. 

While the steel ministry has clarified that ore exports have increased marginally, the mining ministry states that toll has been taken on India’s iron ore exports due to imposing of duties and weak global demands. 

The mining ministry’s officials have claimed that the current fiscal will see a fall in the exports of the country’s iron ore by about 40 million tonnes (MT). This enormous fall can be blamed upon poor global demand and imposing of export duty of 15% since June this year.

A major reason for conflict between mine ministry and steel ministry is because of completely opposite demands. Where the mines ministry secretary Shantanu Consul feels that miners should be helped by reducing the export tax on the iron ore, the steel ministry instead wants that the export duty should be increased from the current 15% to 20%. The miners have experienced a lot of lossas lately, since the export duty has led to decrease in demand of the iron ore from China. 

While addressing a press conference, Consul informed, “This year, the way things are going, total exports may come well below 70-80 million tonnes. Last year, we exported 104 MT and the average rate was about $130 a tonne. The average export price this year could be around $80 per tonne.”

While in a letter to the cabinet secretary, the steel ministry has written that during the first quarter of the current fiscal, almost 35.26 MT of iron ore was exported as compared to exporting of 34.28 MT in the same period last year. 

Further more, Mr Consul stressed on the need for fresh assessment of iron ore reserves and said that there is a need to be reassessing of reserves in captive mines and also in freehold areas. 

Consul informed, “India has 25.25 billion tonnes of iron ore reserves of which about 14 billion tonnes can be mined feasibly.”