Duty and freight hike impacted iron ore exports - Commerce Minister.

Indian Commerce Ministry Mr Anand Sharma iinformed Parliament that hike in export duty on iron ore to 30% and higher railway freight for overseas-bound raw material have affected India's competitiveness in overseas markets.

Mr Anand Sharma said that "The increase in export duty of iron ore to 30% with effect from December 30, 2011 and higher railway freight for export of iron ore compared to the freight for domestic movement of iron ore have affected competitiveness of Indian ore exports, thereby reducing overall exports of iron ore.”

India's exports of iron ore, a crucial raw material for iron making, have been shrinking gradually from 117.37 million tonnes in 2009-10 to 18.37 million tonnes last fiscal. The country had exported 97.66 million tonnes iron ore in 2010-11 and 61.74 million tonnes in 2011-12.

Mr Sharma, in response to a question on decline in iorn ore export from Goa said share of the western state in overall exports have gone down to 57.93% in 2012-13 from 70.10% a year ago due to ban on mining or movement of the raw material. He said that "The percentage share of iron ore exports from Goa declined during 2012-13 compared to previous years' trend mainly on account of ban on mining/movement of iron ore from April, 2012 imposed by the state government of Goa.”

The Supreme Court had on October 5, 2012 also ordered suspension of all mining operations including transportation in Goa.

Source : steelguru.com