India may impose taxes and quotas on exports of iron ore from the country in order to increase availability of the raw material for the domestic steel industry, the Indian steel minister, Virbhadra Singh, stated this week, according to Indian media reports.
"The government has taken a few policy measures to discourage avoidable exports of iron ore and consequently raise domestic availability by increasing export duty on lump ores to 15 percent and having a five percent duty on fines. Although this will have a marginal impact on exports, the government would have to look at the question differently by bringing in definitive deterrence," Mr. Singh said.
"If needed, we will resort to taxation measures and quantitative restrictions to conserve the use of iron ore for today and for the future. But such measures can be brought in a phased manner with a clear long-term plan," he said.
The minister was addressing a press conference on "Challenges for Indian Steel Industry in Infrastructure and Resources", organized by the Federation of Indian Chambers of Commerce and Industry (FICCI).
Minister Singh said his ministry was in close touch with the mines ministry to formulate a new mining policy to ensure domestic coking coal supplies. He also asked public sector enterprises to invest aggressively in the acquisition of mining assets.
Recently, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) recommended imposing a 20 percent duty on exports of iron ore fines as against the current five percent.
India's iron ore exports are directed mainly to China. Most iron ore in the Chinese import iron ore spot market is from India.