The state governments of top Indian iron ore producers, Odisha in the east and Goa in the west, have also opposed any increase in the export duty
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MELANIE BURTON
New Delhi India is holding off on plans to hike its export duty on low-grade iron ore and pellets as resistance from the domestic mining industry grows, a source familiar with the matter said.
The government has been considering raising the export duty to between 20% and 30%, from zero now, according to the source and two industry executives.
But mounting opposition from the mining lobby means a decision is unlikely in the near term, added the source, who spoke on condition of anonymity because the discussions are private.
India’s finance ministry did not respond to an email from Reuters seeking comment.
India’s main mining industry body recently approached the government to oppose the planned increase.
“There is no dearth of iron ore in the country and we have appealed to the government not to impose restrictions on low-grade iron ore because the steel industry does not use it,” said B.K. Bhatia, director general of the Federation of Indian Mineral Industries.
Domestic prices of iron ore have risen in recent months as heavy monsoon rains have disrupted supplies.
In August, prices of iron ore fines in the key eastern producing state of Odisha were 7% higher than the previous month due to the disruption from monsoon rains, commodities consultancy BigMint says.
The state governments of top Indian iron ore producers, Odisha in the east and Goa in the west, have also opposed any increase in the export duty.
“The main challenge the steel industry is facing in terms of iron ore is higher prices of medium- and high-grade ores, due to tight demand and supply balance of these grades,” said Lalit Ladkat, a senior analyst at London-based consultancy CRU.
In May 2022, the government set a duty of 50% on exports of low-grade iron ore lumps and fines with iron content of less than 58%, and another of 45% on pellets, in its efforts to meet rising domestic demand.
But it reversed the decision in November that year, after months of complaints from miners over lost export opportunities. (Reporting by Neha Arora; Editing by Mayank Bhardwaj and Clarence Fernandez)
Published on September 17, 2025