As far as Iron ore
is concerned the Government has yet again showed its clear intensions to
conserve the natural resource for future use by keeping the Iron ore export
duty unchanged at 30%.
However, market
participants expected that at least the export duty on low grade Iron ore would
be cut as they are not used widely in the domestic industry.
The estimated
forecasts for Iron ore exports for this fiscal had already reached around 50
million tonnes from previous 75 million. So, now with no change in export duty,
Iron ore export volumes are set to fall further especially from Goa which
exports mostly low grade Iron ore.
The Govt. bodies are
however in support of keeping the export duty unchanged and say, it is
absolutely necessary to conserve raw material for future use and setting up of
more beneficiation and pelletisation plants should be encouraged to make use of
the low-grade iron ore available in the country.
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