Iron ore export from India has been through a drastic fall of 87.5% in last 4 years. A series of events, since 2011, has influenced the weakening of export.
The country, which was once world’s third largest exporter of Iron ore , was hit hard by 30% duty tax imposed by Indian government on 30 Dec, 2011 presuming that it’ll ensure raw material supply to the domestic Steel producers.
Following this event, Supreme Court imposed mining & export ban in Karnataka and Goa on 29 Jul, 2011 and 05 Oct, 2012 respectively; amid illegalities and environmental norms.
In Dec 2012, Odisha government directed miners to sell only 50% of total Iron ore production outside the state. Also, exporters have to pay a high freight rates in the form of distance based charge (DBT) for Iron ore transportation meant for export.
SteelMint research states that Iron ore export from India has fall down by 20.4% Y-o-Y to a total of 14.4 MnT in FY14.
Top 5 Iron Ore Exporters in FY14
- Rungta mines
- MMTC
- Bagadiya Brothers
- Kashvi Power
- SM Niryat
Top 3 Iron Ore Exporting Ports in FY14
- Paradip 5.6 MnT
- Vizag 4.8 MnT
- Haldia 2.2 MnT
They contributed about 87% of total Iron ore exports in FY14, followed by Dhamra, Gangavaram, Kakinada and Redi port.
In FY15, Indian Iron ore export might touch 19-20 MnT, as Goa will contribute to export sale after Goa Directorate of Mines & Geology, under Government of Goa (DMG) in Nov 2013 allowed e-auction of 15 MnT ore lying at various locations in the state.
Goa, used to be India’s largest Iron ore exporting state followed by Karnataka, until the ban was enforced. Goa exported about 7.4 MnT of Iron ore in FY13.
Leave a Reply