The Federation of Indian Mineral Industries (FIMI), the apex body representing domestic miners, has sought the withdrawal of the 30 percent export tax on iron ore with Fe content of 58 percent and above in the forthcoming national budget to be placed before India’s parliament early next year, a FIMI official said on Tuesday, December 29.
At present, no export tax is levied on exports of iron ore of grades with Fe content up to 58 percent.
In a pre-budget memorandum submitted to India’s finance ministry, FIMI explained its demand for the withdrawal of the 30 percent export tax on the grounds that there were stockpiles of 163 million mt of iron ore lying at mine heads in the states of Odisha and Jharkhand, largely of grades with Fe content ranging between 58 percent and 62 percent.
According to FIMI, Chinese steel mills are able to secure iron ore supplies of high grade at a lower price than the 58 percent grades exported from India net of export tax, freight and transportation costs, and so demand for ex-India iron ore has fallen and hence stockpiles are building up at mines.