Continuing a declining trend for the fifth consecutive month, iron ore exports in November have gone down by 30.59 per cent to 8.07 million tonnes (MT) due to the ban imposed by mineral-rich Karnataka on iron ore shipments.
"The decline, basically, is because of the ban imposed by the Karnataka government and unless the matter is resolved, this trend will continue," Federation of Indian Mineral Industries' (FIMI) Secretary General R K Sharma said.
According to the data compiled by industry body FIMI, the country had shipped 11.53 MT of iron ore, a vital steel-making raw material, during the same period last year.
Echoing similar sentiments, a senior Commerce Ministry official said that "the decline in the (iron ore) exports is due to policy reasons ... As you know Karnataka does not allow the exports".
In July, Karnataka government had banned issue of permits to transport iron ore and other minerals for exports, terming this as necessary check on illegal mining and illegal export of minerals.
The matter is now being heard by the Supreme Court which had issued a notice to the state government last week on the issue. The apex court is expected to hear the matter in the third week of January.
"Now the matter is in the Supreme Court... Let's wait for the final order. Exports will resume in full swing, if the court discontinues the ban," Sharma added.
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On the outlook, Sharma said the demand has improved and so the prices. "As of now, there is demand in China. But there is problem in the supply chain due to Karnataka ban," he said.
At present prices are hovering around USD 155-160 a tonne, he said.
For eight months ended November 30, 2010, the iron ore exports fell by 15.69 per cent to 54.58 MT against the year-ago figure of 64.74 MT, the FIMI data said.
India, third largest iron ore exporter, had produced 218 MT of iron ore in the last fiscal and exported almost half of it.
Of the total exports, more than 80 per cent had gone to China, the world's largest steel producer.
At present, Iron ore lumps attract an export duty of 15 per cent, while a 5 per cent tax is levied on shipments of iron ore fines.