India's Central Board of Excise and Customs under the Ministry of Finance has issued a notification dated January 27, 2014, stating that a five percent export tax has been imposed on
iron ore pellets, with immediate effect.
The export duty on
iron ore pellets was in response to demand from the domestic steel industry including the request from the Associated Chamber of Commerce and Industry (ASSOCHAM) who was seeking a 30 percent export tax on
iron ore pellets, fines and lumps to eliminate the shortage of raw materials for domestic steel mills, a government official said.
According to data available from
India's Ministry of Steel,
iron ore pellet exports from
India surged during April-October 2013 to 435,000 mt compared to 40,000 mt during the corresponding period of the previous year. Total
iron ore pellet exports for the full financial year ending March 31, 2014 are expected to reach 800,000 mt.
On the other hand, for April-October 2013, the ministry indicates that
iron ore fines exports from
India totaled 8.43 million mt, down 43.5 percent compared to the corresponding period of the previous year.
There are 36
iron ore pelletization plants in
India with an aggregate production capacity of 63 million mt per year.