Amid ban on iron ore mining in Karnataka, exports of the mineral have dipped by over 25% to 35.38 million tonne in April-October period of this financial year, mining industry body FIMI said today.
In the corresponding period of last fiscal, India had exported 47.27 million tonne of the vital steel making raw material.
According to the Federation of Indian Mineral Industries (FIMI) data, exports of the ore were down by 33.80% to 4.55 million tonne in October vis-a-vis 6.87 million tonne of the corresponding month of FY11.
"Fall in (iron ore) exports is due to a combination of factors like ban on mining in Karnataka, illegal mining issues in Goa, restriction on truck movements and truckers strike," Federation of Indian Mineral Industries Secretary General RK Sharma said.
He added that falling prices of the ore in world markets have also added to the woes of the exporters and the outlook for the sector is "bleak".
"There is no chance of resumption of exports from Karnataka in this fiscal, while Goa and Orissa governments have also put lots of restrictions on movement of iron ore due to illegal mining issue.
"So, the outlook for the remaining period of the (fiscal) year is bleak for the exporters," Sharma said.
The Supreme Court has banned mining in Karnataka due to large scale environmental degradation of the areas. Subsequently, it allowed sale of 25.88 million tonne of iron ore stock lying at the mines in the state.
Karnataka contributes over 20% of India's total ironore production.
Goa has also put lots of restrictions on movement of iron ore to check the menace of illegal mining. A Centre-appointed judicial commission, headed by retired justice MB Shah, is also probing the issue and had inspected the mines in Goa twice since September.
The Commission is expected to inspect mines in Orissa by the end of this month.