MUMBAI (Commodity Online): India has raised the export duty of iron ore by 30% from the existing 20% to help the domestic steel industry, which is presently suffering from shortage of raw materials.
The decision of India's Ministry of Commerce has been a big blow to the mining sector as the rise in duty means end of exports, according to R K Sharma, Secretary General, Federation of Indian Mineral Industries. With the existing 20% export duty, mining sector experienced 28% decline in the exports in the first eight months of FY12, reported Business Standard.
Currrently, the steel manufacturing sector in India is facing severe shortage of raw materials mainly iron ore as a result of mining ban in Bellary region in Karnataka due to illegal mining.
The increase in export duty is expected to boost the supply of ore to the domestic steel companies. It might be available around cheaper rates and ultimately reduce the output cost.
