NEW DELHI (Commodity Online): The India government is planning to raise the export duty of iron ore to discourage foreign buyers and to meet the domestic demand.
“We have increased the export duty from five per cent to 20 per cent. We may increase it further,” Said Mr Beni Prasad Verma, the Steel Minister, in Lok Sabha during Question Hour.
Mining ban in Karnataka and also the disputes between steel manufacturers and mine owners has affected the production in India.
India produces more than double the consumption by the domestic steel companies.
The increased export duty will reduce foreign buyers and will able to meet the domestic needs.
India has been exporting more than 50% of the iron ore produced for the past three years. In 2008-09, 212.96 million tons of iron ore was produced, exported 105.86 million ton. 117.37 million ton was exported in 2009-10 of 218.64 million tons produced and in 2010-11; around 97.66 million ton was exported of 208.11 million ton.
The Public Sector Undertakings (PSUs), Steel Authority of India Ltd has its own iron ore mines to meet the requirements.
