'Lifting of iron ore export ban not to change things much'

NEW DELHI: The lifting of iron ore export ban in Karnataka from April 20 will do little to boost prospects for mineral exporters who are already battling hike in custom duty and railway freight charges.

"The lifting of the ban will not boost exports much. The duty hike in the Budget and subsequently, the increase in railway freight have affected exports. Indian firms are not in a position to compete with their global players," industry body FIMI's Secretary General R K Sharma told PTI.

The country's top iron ore producer NMDC too felt that the move is not going to have much affect on its prices.

"It is not going to impact prices much," said a company official.

The Supreme Court has today directed Karnataka government to lift the ban on iron ore exports from April 20. The apex court has also granted the state 15 days to put in place required infrastructure to check illegal mining in the state.

Karnataka, which is the country's largest iron ore exporter, had banned transportation of iron ore for export purposes from July 2010. This was challenged by leading mining firms Sesa Goa, MSPL, SB Minerals, Minerals Enterprises and Sathya Granites before the Supreme Court.

According to the industry figures, the ban impacted outbound shipments. Iron ore exports from India declined by 18 per cent to 85.43 MT during April-February period of the current fiscal over the corresponding period last fiscal.

Further, continuing its declining trend for the eighth consecutive month, iron ore exports in February has gone down by 18.60 per cent to 10.13 million tonnes (MT).