Goa miners seek abolition of export duty on iron ore
(Minews) - Goa miners today demanded complete withdrawal of export duty on iron ore produced in the state saying its low-grade variant has few takers in the country and outward shipments are also not profitable given the current subdued global prices.
"There is a need for withdrawal of export duty on iron ore from Goa as in the current market conditions the export of low grade ores which form 80 per cent of the Goan export is unviable," Goa Mineral Ore Exporters' Association said in a release.
With few takers of its low-grade produce, miners from Goa generally exports their entire produce to China. As the global price for the steel-making raw material tumbled, miners from the state find exports not a profitable proposition especially with the existing 30 per cent duty on outward shipments.
Due to lower demand from China, world's largest consumer of iron ore, prices of benchmark iron ore grade have crashed by over 50 per cent in last six months. The prices of lower grades of ore, the type which Goan miners produce, is hovering in the range of around $35-40 per tonne.
"In the current scenario where the prices of low grade ores have collapsed drastically, export duty has not generated any revenue either for the State or the Central Government," it said.
Earlier, Union Steel and Mines Minister Narendra Singh Tomar had written to Finance Minister Arun Jaitley seeking to introduce a different duty structure for exports of low-grade iron ore from Goa in the Budget.
Publish date : Wednesday 4 March 2015 20:18
Story Code: 22348
