India announces new freight rate for iron ore

India announces new freight rate for iron ore

The Indian Railway Ministry posted new freight rates for iron ore, which will likely cut exports of the raw material. As a response to the steel industry's demand, the Indian Railway Ministry implemented a dual freight policy for iron ore exports. Under this policy, the freight rate of iron ore being transferred to ports for export will be twice the freight rate of iron ore destined for industrial use. For instance, a steel producer will pay a tariff of Rupees 25.02 to transport a ton of iron ore over a 100 km-distance, while an exporter will pay Rupees 50.04 to transport the same amount of iron ore to a port. The new policy should ensure iron ore availability in the domestic market by curbing exports. Meanwhile, the freight rate on stainless steel has been reduced by almost 50%.