India May Ban Iron Ore Export to Improve Domestic Availability

India May Ban Iron Ore Export to Improve Domestic Availability

The Indian steel sector has been facing an acute shortage of iron ore due to lease ownership changes in March 2020 end. India’s Minister of Steel Mr

Dharmendra Pradhan acknowledged that there is a gap between demand and supply of iron ore in India. He said “In 2019-20, the overall mining capacity of iron ore was 250 million tonne while the domestic consumption was only around 180 million tonne so the surplus was exported. But at this juncture there is a gap and we are talking to concerned stakeholders. I am concerned at the non-availability of iron ore. If state governments can initiate some process in the form of a policy framework then we can avoid disruption to the supply chain. It will be a win-win for the industry, state government as well as the central government.”

Responding to a specific query on the possibility of imposing a short term ban on iron ore exports, he said, it could be an option which could be explored.

According to industry estimates, while production of iron ore production during the period April to July 2020 witnessed a de-growth of around 50 per cent as compared to last year, exports registered a sharp rise of around 63 per cent during the same period.

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