Orissa government has welcomed the four-fold rise in the export duty on fines announced in the budget saying that it would discourage exports of iron ore.
Minster for industries, steel and parliamentary affairs, Raghunath Mohanty on Monday told “The ET”, “We have been demanding a ban on the export of iron ore and chrome ore from the state to meet domestic demand and prevent illegal mining. The union finance minister has taken the first move by increasing the duty by four fold. It is a welcome move”.
Confederation of Indian Industries [CII], Orissa chapter chairman, Mr R K Jena also welcomed the decision, “The introduction of 20% ad valorem export duty on iron ore and withdrawal of export duty on iron ore pellets is in line with the expectation from several Industries and will promote value addition inside the country and conservation of natural resources”.
At present the export price of high grade iron ore fines (63.5%) is nearly $ 175 FOB including $ 5 export duty earlier charged by the union government.
“The four-fold hike in export duty of iron ore fines will force exporters to either stop their trade or the mine owners have to bring down the price of iron ore fines. There will be huge losses by the traders who have either stockpiled the iron ore fines for export and pending contracts”, Orissa Mineral Traders Association [OMTA] president P K Nayak told “The ET”.