Govt seems divided over ban on export of iron ore
Differences seem to have emerged within the government over the contentious issue of disincetivising or even an outright ban on exports of iron ore as a measure to contain inflation.
By PTI |
NEW DELHI: Differences seem to have emerged within the government over the contentious issue of disincetivising or even an outright ban on exports of iron ore as a measure to contain inflation, which has soared to 40-month high.
While pressure is mounting from certain quarters for either increasing the export duty or banning the iron ore shipments, the commerce ministry is against any such move, sources said.
Commerce and Industry Minister Kamal Nath had said on April 11 that the iron ore variety, which is being exported, is not of use to domestic steelmakers and a ban would serve no purpose to contain inflation.
The iron ore prices have seen a sharp rise in the global market, leading to to the revision of rate by the domestic miners.
On other hand, the hike in iron ore rates has led to a hue and cry by steelmakers, who are blaming the high cost of raw material for increase in steel prices. Steel prices have gone up by up to 49 per cent since December.
Meanwhile, the inflation rate has soared to a 40-month high of 7.41 per cent for the week ended March 29.
An intense lobbying has started from iron ore producers against any ban on exports, apprehending that the government is likely to come out with more tough measures in the next few days to check the price rise which may include hiking the export duty or even an outright ban on iron and steel.
While pressure is mounting from certain quarters for either increasing the export duty or banning the iron ore shipments, the commerce ministry is against any such move, sources said.
Commerce and Industry Minister Kamal Nath had said on April 11 that the iron ore variety, which is being exported, is not of use to domestic steelmakers and a ban would serve no purpose to contain inflation.
The iron ore prices have seen a sharp rise in the global market, leading to to the revision of rate by the domestic miners.
On other hand, the hike in iron ore rates has led to a hue and cry by steelmakers, who are blaming the high cost of raw material for increase in steel prices. Steel prices have gone up by up to 49 per cent since December.
Meanwhile, the inflation rate has soared to a 40-month high of 7.41 per cent for the week ended March 29.
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An intense lobbying has started from iron ore producers against any ban on exports, apprehending that the government is likely to come out with more tough measures in the next few days to check the price rise which may include hiking the export duty or even an outright ban on iron and steel.
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