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New reason to ban iron ore exports

Iron ore is a hot subject today. The demand for it, by consumers within as well as outside the country, is steadily on the rise. The steel plants, we all know, have been vocal for quite some time against large-scale exports of iron ore. Of late they have been joined by the trade unions. At a recently concluded national convention in Kolkata, the trade unions not only demanded a total ban on iron ore exports but also threatened to launch countrywide movement in support of the demand. The Railways have been milching the iron ore sector for some time, through whatever means available to it. There have been reports of large-scale road movement of iron ore, suggesting burning of a much costlier fuel to transport a cheaper mineral. It might be interesting to know that Orissa is the largest producer of iron ore in the country. In 2006-07, the share of Orissa, of the country’s total production of 181 million tonnes, was around 62 mt, comprising 37 mt of lumps and 25 mt of fines. Orissa’s production was barely 13 mt even a few years ago. Unfortunately, the transportation facilities have not grown in keeping with the growth in production.

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