Miners based in Odisha are transporting iron ore fines through road on cheaper freight than railways said market traders. Indian railways charge around 800-900 per tonne as freight for movement to domestic consumption where as it charges Rs 2,800 per tonne for exports purpose for same distance.
“Most miners are opting road as a means of transport, as it costs them around Rs 1,700-1,800/t, where as railways charge them Rs 2,500-2,800/t for the same route. But road transport has its limitation.” said a transport agent based in Odisha.
“International prices are not so encouraging that by using rail as our mode of our transport we can make profits. Over that high export duty is further depressing exports from India. Merchant exporters are almost out of the market and we do not see much scope of exports of iron ore reviving from India.” said Mr Agarwal, a merchant exporter based in Mumbai.
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