FIMI requests govt to scrapping export duty on iron ore

New Delhi, Sept 18 (UNI) Federation of Indian Mineral Industries (FIMI) has urged the government to scrap the recently imposed 15 per cent export duty on iron ore as it has led to the virtual closure of its mining sector.

In a statement issued here today, FIMI Secretary General R K Sharma pointed out that since the imposition of the 15 per cent export duty from June 13, Chinese buyers are shying away from buying Indian iron ore on spot basis.

Whatever exports have taken place post-June 13 are the servicing of old contracts signed before this date.

There has been hardly any fresh sale after June 13. The condition has become as precarious that even as less a price as 75 dollars per tonne on Freight on Board basis with 63.5 per cent iron content from the eastern region is not getting the Chinese offer.

This has led to the cancellation of 20,000 indents with the Railways from different loading stations.

There is no space available with the Railways to keep their rakes of empty wagons. The road movement has already affected because of the restrictions imposed on NH-125, the statement said.

Unless demand from China increases, the mines will have to curtail their production, it added.

UNI BKS SR KN1953