With over 25% decline in iron ore exports during the April-October period, Federation of Indian Mineral Industries today further lowered the exports target to 60 million tonne for the current fiscal.
"Iron ore exports from the country fell 25.15% in the first seven months of the current fiscal to 35.38 million tonne. At this rate, our exports would not be more than 60 million tonne this fiscal," FIMI Secretary General RK Sharma told PTI here.
During the April-September period of the last fiscal, iron ore exports from India were 47.27 million tonne.
India had docked a little over 97 million tonne iron ore last fiscal and following the ban on mining in Karnataka, the miners' body had estimated that exports would be around 70-75 million tonne in the current fiscal.
Sharma said mining ban in Karnataka, closure of 45 mines in Goa due to environmental reasons and rise in export duty and freight charges have made iron ore exports an unviable proposition, triggering FIMI to lower its estimates.
"The price of iron ore in the international market is $106 per tonne today. It is not a viable price for an exporter. He has to pay up to Rs 100 towards railway freight, 20 per duty on exports and 10% royalty," he said.
Iron ore miners have had a bad run since the beginning of current fiscal. Following hike in export duty to 20% in March this year, exports have started falling continuously. In fact, from April onwards, exports never came in the positive zone when compared with the same month of the last fiscal.
The fall was the sharpest in August when exports of iron ore plunged by 44.4% over the same month last fiscal. It was the lowest in the month of September at 14.1% to 2.87 million tonne.
The 2011-12 fiscal started on a disappointing note for iron ore exporters, as the government increased the export duty in order to encourage value-addition within the country.
India, the world's third largest iron ore exporter, had shipped over 100 million tonne iron ore in 2009-10.
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