Centre has killed ore trade: FIMI

Alarmed by the continuous slide in the exports of iron ore, miners body FIMI has accused the government of “killing” India’s ore trade and sought immediate steps for its revival.

Apprehending a sharp fall in exports of the key steel-making raw material this fiscal too, the Federation of Indian Mineral Industries (FIMI) has said ore units are on the verge of closure.

The allegations come in the wake of India’s top 12 major ports witnessing a sharp 38 per cent decline in ore handling to only about eight million tonnes (mt) in April-December of the current fiscal, which includes domestic movement of cargo.

“India is the only country in the world which has killed its flourishing iron ore trade,” FIMI secretary general R.K. Sharma said.

“The trends show that exports will decline hugely this fiscal. In 2014-15, exports stood at 6.12 mt,” he said, pitching for “measures like removal of export duty on iron ore fines as well as lumps”.

Mineral ore exporter bodies have already sought Prime Minister Narendra Modi’s intervention for removal of export duty on iron ore, saying it will help in higher revenues of $750 million a year.

Besides, industry body GMOEA has written to PMO urging it to remove the export duty on iron ore fines with Fe content below 58 per cent and on iron ore lumps.