Economy

Iron ore exports nosedive 62% to 15 mt in April-Nov

PTI New Delhi | Updated on March 12, 2018 Published on January 22, 2013

Iron ore exports have come down to 15 MT, registering a fall of more than 62 per cent during April-Nov, 2012, says Federation of Indian Mineral Industries (FIMI).

India’s iron ore exports more than halved to 15 million tonnes (MT) in April—November 2012 due to mining ban in some key producing states, curbs on shipments and higher duty and freight charges, according to miners’ body FIMI.

Exports in April—November period of the last fiscal stood at 40 MT.

During the first eight months of the current fiscal, exports have come down to 15 MT, registering a fall of more than 62 per cent as compared to the year—ago period, as per the data compiled by the Federation of Indian Mineral Industries (FIMI).

In November last year, the fall was a massive 93 per cent at 0.3 MT as compared to 4.6 MT in the same month in 2011.

In October, 2012 also exports had witnessed a steep fall of 95 per cent to 0.2 MT as against 4.5 MT in October, 2011.

“Exports have dried up, imports are increasing. If there is one industry in India where the government has ensured the destruction of trade, it is iron ore,” FIMI Secretary General R K Sharma told PTI.

Ban on mining operations in some parts of the country, curbs on shipments and export levy as high as 30 per cent besides higher freight charges have spelt doom for the industry, Sharma added.

Sharma alleged Government bowing down under pressure from the Steel Ministry had raised the export duty while raising the freight duty roughly four times for exports as compared to domestic transportation of the ore.

Data sourced from MMTC and other exporters showed nil exports from 12 ports out of 16 while in case of remaining four —— Gopalpur, Krishnapatnam, New Mangalore and Vizag —— exports fell sharply by about 75 per cent, 55 per cent, 83 per cent and 45 per cent, respectively.

Exports of the mineral have been declining constantly in the last three years due to ban on mining in states like Karnataka and Goa following large—scale illegal mining and environmental concerns, he said.

Exports fell sharply to 61.74 MT in 2011—12 from 98 MT In 2010—11. In the year prior to exports stood at 117.37 MT.

India is the third largest global exporter of the ore.

The Government had hiked the duty on exports to 30 per cent in December 2011 after raising it to 20 per cent in March.

Production of iron ore in around 45 mines in Goa has also been shutdown due to environmental reasons. An informal export ban is also in place in Odisha.

Published on January 22, 2013
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