India’s iron ore exports have gone down by 28.16 per cent to 11.17 million tonnes (mt) during April-December of the current fiscal as gloom continues over the sector due to the present regulatory scenario.
India, once the third largest exporter of iron ore, had exported 15.55 mt in the corresponding period last fiscal, data released by the Federation of Indian Mineral Industries (FIMI) showed.
“We expect the situation to continue as long as government policy does not change. There is total gloom in the sector, there is no ray of hope,” FIMI Secretary General R.K. Sharma said.
He added that this year’s iron ore exports are expected to come down by 20 per cent to about 14-15 mt from 18.37 mt in 2012-13.
Paradip (4 mt), Vizag (3.84 mt) and Haldia (1.58 mt) are the major ports from where the exports are taking place, the FIMI data showed.
Mining ban
India’s iron ore exports have been hurt badly in the last few years due to mining ban in Goa and Karnataka, which led to a drastic fall in domestic production as well. Increase in export duty to 30 per cent on both types of iron ore, lumps and fines, in December 2012, had also impacted the sector.
At present, low grade iron ore (or fine) are being exported from Odisha, Jharkhand, Rajasthan and Madhya Pradesh as mining is still banned in Goa. Export of the mineral is not permitted from Karnataka at present.
Few days ago, the Goa Government had issued a notification to sell about 15 mt iron ore through exports, as per a Supreme Court order. However, none of it is expected to be exported.
According to industry estimates, India’s total iron ore production in the current fiscal will be around 140 mt, almost the same as last year.