Budget 2026: Mining industry seeks nil export duty on low-grade bauxite

Withdrawing the export duty on low grade bauxite and restricting imports of finished aluminium products are among the budget asks of India’s domestic mining industry. In its representations, the Federation of Indian Mineral Industries (FIMI) also sought concessional rail freight rates for coking coal, iron-ore, and steel among others.

According to FIMI, low-grade bauxite in the western part of the country has a market and removing the 15% duty will give a boost to exports.

“Non-plant grade bauxite is accepted in certain countries on account of the paucity of bauxite and availability of technology,” FIMI said adding India’s bauxite exports stood at 8.91 million tonnes (MT) in 2015-16, which fell to 0.359 mt in 2024-25.


The mining body has also urged for doubling the import duty on aluminium imports from 7.5% to 15% and restricting shipments from 'China, Russia, ASEAN countries and the Middle East, which have surplus aluminium capacities.'

FIMI said the high rail freight rates and increasing logistics costs are not economically viable for the aluminium industry. The industry body sought re-introduction of concession in freight rates for Short Lead Goods Traffic. Lowered rail fare rates for Coal, Coke and Aluminium metal and raw materials of Aluminium industry were also among the industry demands.