A major set back for Indian Pellet manufacturers, as government levied an Export Duty of 5% on Exports of Iron  Pellets with immediate effect.

Central Board of Excise and Customs (CBEC)  has issued its Notifications No.3/2014-Central Excise (NT) and No.4/2014-Central Excise (NT) both dated 24.01.2014 in order to specify an imposition of export duty on iron pellets by 5% .

Considering the domestic requirement of iron ore pellets, the Government has decided to impose an export duty of 5% on iron ore pellets. CBEC issued Notification No.3/2014-Customs, dated 27.01.2014 in this regard.

Iron ore fines and lumps are leviable to an export duty of 30%. Iron ore pellets are however exempt from export duty. In 2012-13, exports of iron ore pellets were negligible. However, in April-November 2013, exports of iron ore pellets have risen sharply, causing an apprehension about shortage of iron ore in the country. Iron ore is a critical raw material required for production of steel.

Iron Pellet Exports in April-December 2013 from Indian Ports (In MT)

Provisional Data
Source: SteelMint, Steel-360, Customs