The Indian government has reduced the railway freight charge on iron ore meant for exports by INR 475/mt ($9.5/mt) effective as of Tuesday, March 6, according to media reports.
H C Daga, vice president of the Federation of Indian Mineral Industries (FIMI), stated that the new freight charge has been set at INR 2,425 ($48.14) per metric ton of iron ore.
The cut in freight rates will help exporters to reduce losses caused by the hike in export duty on iron ore. The Indian government increased the export duty on iron ore from 20 percent to 30 percent in January.