Seeking free trade of iron ore pellets, the Federation of Indian Mineral Industries (Fimi) will soon give a representation to Ministry of Mines against any imposition of export duty on the commodity.
Recently, some the industry groups like Assocham and Indian Chambers of Commerce have written to the Ministry of Finance and Commerce to impose 30 per cent export duty on iron ore pellets to improve the availability of the commodity for the domestic steel manufacturers.
"Pellet is a value added product, for which the manufacturing process is complex. So, free trade should be allowed for this commodity....We will soon give a representation to the ministry against any imposition of export duty on pellet," Federation of Indian Mineral Industries (Fimi) vice-president Basant Poddar told PTI today.
Currently, there is zero duty on pellet exports, while iron ore fines and lumps attract 30 per cent export duty.
Notably, export of iron ore pellets have increased by around 11 times to 435,000 tonnes during April-October period of this fiscal against the same period of previous fiscal.
Even exports of iron ore jumped to 5.33 million tonnes in the second quarter of this fiscal against 2.33 million tonnes in the first quarter at a time when the domestic steel industry is reeling under the shortage of iron ore supply.
Referring to reopening of iron ore mines in Karnataka, Poddar said two-three mines including those of Sesa Sterlite is likely to be opened in the near future.
