Sglogo_1

 

Events Reports Directory Forum Articles Job Post Resume Post Links Currency Archive Metal Rate Archive Glossary Import Duty Structure Incoterms 2000 Technical Info Trade Leads Currency Codes Contact Us Disclaimer Feedback Privacy Policy Site Map

 

FAIL (the browser should render some flash content, not this).

October 07, 2008


Indian iron ore exporters claim to be hit by strengthening rupee

Indian domestic iron ore miners said that their export revenue has slumped by about INR 1,000 crore owing to rupee appreciation and demanded abolition of export duty on the mineral to offset the losses despite the spot export prices of iron ore nearly doubling in last few months.

Mr Rahul N Baldota president of Federation of Indian Mineral Industries said that “We have already lost about 15% of our export revenue, which is about INR 1,000 crore, owing to rupee appreciation. We seek immediate abolition of export duty to enable us offset the losses sustained. Imposition of export duty coupled with rupee rise against the dollar has served a double whammy to the miners and could lead to further trouble if no succor was provided to them.”

Mr Baldota said that “The only way through which the government could help us was to remove the export duty on iron ore. Another way to bail out the iron ore miners of the current situation was to abolish the service tax currently levied on mining the mineral. If this is done it would also provide a reprieve to us.”

But the steel industry was not impressed by FIMI’s assertion on sustaining losses, with the Indian Steel Alliance arguing that rising iron ore prices, both in domestic market and internationally, would definitely offset their losses. Mr Moosa Raza president of Indian Steel Alliance said that “The Indian Steel Alliance feels that there has been tremendous appreciation of the prices of iron ore both domestically and globally. Rupee appreciation may be absorbed by them in that case.”

Indian steel industry and miners are at loggerheads on the issue of ore export with the former saying that unabated exports of the mineral could seriously jeopardize the massive capacity expansions announced by major steel companies as they needed assured raw material linkages. On the other hand, minors contended that they were constrained to export iron ore since the domestic steel companies were unable to off take surplus production.