Sunday, June 1, 2008

India Set To Act On Iron Ore Exports

Reports coming from India today suggest that the government may be about to ban the exports of iron ore. NDTV quotes Steel Secretary, RS Pandey that the government is "looking into the issue".

Meanwhile, the Economic Times suggests that the Indian government is also looking at the alternative of a 15% export duty. It reports a 'highly-placed source' as saying that the decision was taken at the meeting of the Committee of Secretaries (CoS) on May 30. It also suggests that the CoS has also decided to roll back export duty on steel, barring primary and semi-finished products, in return for the Rs 4,000 per tonne reduction in prices announced by them early last month.

Steel makers and iron ore producers have been at loggerheads over export of the raw material. Steel makers have been demanding restrictions on raw material export while iron ore producers, helped by a section in the government, had contended that the ore meant for exports was of no use to Indian steel-makers.

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