Monday, March 28,
Iron ore exports from ports like Visakhapatnam, Gangavaram and Kakinada may drop by 15-20% during the next financial year due to the hike in export duty.*
In the Budget 2011-12, the rate of export duty for lump and fine iron ore has been enhanced and unified at 20% ad valorem, while iron ore pellets have been fully exempted.
“The Railways has increased its freight rates by Rs 800/MT and if export duty increases to 20 per cent, our ore prices will not be attractive in the international market,” Gangavaram port sources said.
According to sources, iron ore exports at Kakinada port have already dropped drastically and may fall further in the next financial year. Kakinada port exported 2.5 million tonne iron ore in 2009-10, and in the current year it exported only one million tonne up to February. This was due to the problems in ore excavation in Bellary area.
Apart from this, the recent tsunami in Japan will also impact ore exports from Visakhapatnam port over the next two to three months. State-owned NMDC and MMTC Limited export 3-4 million tonne iron ore to Japan from Vizag port every year.
Leave a Reply