India has delayed its decision to raise the export duty on low-grade iron ore and pellets following strong opposition from the domestic mining industry, reported Reuters, citing a source and two industry executives.
The proposed increase, which would have seen duties rise to between 20% and 30% from the current rate of zero, has been put on hold due to the resistance.
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The Federation of Indian Mineral Industries, through its director general BK Bhatia, has appealed to the government not to impose restrictions, citing the steel industry’s lack of use for low-grade ore.
In a communication to Union Minister of Mines G. Kishan Reddy, Goa Chamber of Commerce and Industry (GCCI) president Pratima Dhond also expressed concerns over the possibility of extending export duties to iron ore fines and lumps with an iron content of less than 58%, reported the Press Trust of India.
This move, the GCCI fears, could severely impact the mining sector in Goa.
Domestic iron ore prices have increased in recent months, exacerbated by the impact of heavy monsoon rains on supply.
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By GlobalDataIn August, BigMint, a commodities consultancy, reported that iron ore fines prices in Odisha, a key producing state in eastern India, were 7% higher than in the previous month due to monsoon disruptions.
Both Odisha and Goa, the leading iron ore-producing states in India, have expressed opposition to any rise in the export duty.
In May 2022, the government introduced a 50% duty on exports of low-grade iron ore and a 45% duty on pellets, which was reversed in November 2024 after miners complained of lost export opportunities.
