Miners seek withdrawal of duty on iron ore exports
Mining industry sought a complete withdrawal of the 15% ad valorem duty on iron ore that was levied on June 13.
By ET Bureau |
NEW DELHI: Mining industry on Thursday sought a complete withdrawal of the 15% ad valorem duty on iron ore that was levied on June 13. Federation of Indian Mineral Industries (FIMI) claimed exports have been impacted after the duty was imposed.
Though FIMI did not divulge the drop in exports, mining industry estimated the drop to be in between 15-20%.
���Iron ore exports have become unviable for Indian miners due to the 15% ad-valorem export duty, increase in freight charges and decline in prices of the ore in global market,��� FIMI president Rahul Baldota said. He said India could lose foreign exchange of $10 billion if exports became unviable.
FIMI says rail freight for iron ore export has increased by almost 70% in the last few months. Likewise, the hike in freight charges is equivalent to around 15% of freight on board (FOB) realization of the ore ($21 per tonne).
���In Karnataka alone, the number of railway indents requisitioned to ferry iron ore to ports have declined from 20,000 a few months back to about 1,000 now,��� he said. The margins have fallen to 10-12% against 30-35% earlier, he added.
Though FIMI did not divulge the drop in exports, mining industry estimated the drop to be in between 15-20%.
���Iron ore exports have become unviable for Indian miners due to the 15% ad-valorem export duty, increase in freight charges and decline in prices of the ore in global market,��� FIMI president Rahul Baldota said. He said India could lose foreign exchange of $10 billion if exports became unviable.
FIMI says rail freight for iron ore export has increased by almost 70% in the last few months. Likewise, the hike in freight charges is equivalent to around 15% of freight on board (FOB) realization of the ore ($21 per tonne).
���In Karnataka alone, the number of railway indents requisitioned to ferry iron ore to ports have declined from 20,000 a few months back to about 1,000 now,��� he said. The margins have fallen to 10-12% against 30-35% earlier, he added.
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