Fines Tariff Remains Unchanged
India’s Commerce and Industry Minister Anand Sharma has said there will be a minor increase in the export duty on iron ore lumps to discourage shipments, though duties on iron ore fines will remain unchanged.
There had been fears of a rise in the duty rates on both iron ore fines and lumps to 20 per cent. The government at present levies an export duty of 10 per cent on iron ore lumps and 5 per cent on iron ore fines, though sources were unable to confirm or deny reports that the duty on lumps could go up by another 5 per cent.
"There will be no increase in the export duty on iron ore fines, but there will be a marginal increase in the export duty on lumps, which we are in agreement (with other ministries)," Sharma told reporters.
Last week, officials from the steel, mines, commerce and finance ministries discussed the issue of a rise in the export duty on different types of iron ore.
The Steel Ministry wrote to Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee last month seeking a two-fold hike in the present duty structure. The ministry wants to discourage outward dispatches as it is of the view that the vital raw material for steel making should be retained for domestic consumption.
In 2008-09, iron ore exports amounted to 106 million tonnes, about 85 per cent of which were fines.
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