According to reports, India may go as far as banning exports of iron ore and flat steel to cool down domestic prices, which are boosting domestic inflation.
The Committee of Secretaries (CoS) stated during its last meeting that if prices for flats are not kept under check, the government will apply measures which may vary from either an increase in export duty to a complete ban.
The government may also explore an opportunity to ban exports of iron ore in order to increase its availability. According to the government, an unprecedented hike in prices for raw material together with growing demand for steel products in the country has led to the skyrocketing of steel prices. Therefore, a ban of iron ore exports would not only increase its availability in the domestic market but also lead to a reduction in the production costs of steelmakers and, consequently, in steel prices.