By Neha Arora
NEW DELHI, – India’s leading steelmakers’ body wants the government to impose an export tax on low-grade iron ore and pellets to address local shortages, according to a letter by the Indian Steel Association , which was seen by Reuters.
India, the world’s fourth-largest producer of the steel-making ingredient, targets to double its steel output to 300 million metric tonnes per year by 2030 to aid its economic expansion and infrastructure development.
The ISA has sought a 20% export tax on low grade ore that has less than 58% iron content, and a 10% export tax on all iron ore pellets, it said in a July 17 letter to the federal Ministry of Steel.
China typically accounts for more than 90% of India’s overall iron ore exports.
The ISA estimates shortages of the steelmaking ingredient in India would rise to more than 100 million metric tonnes per year in the coming years compared to the present 55 million metric tonnes.
India currently does not tax exports of low-grade iron ore, but levies a 30% export duty on high-grade iron ore.
That has led to some companies blending higher-grade and lower-quality ore for exports, said the ISA, whose members include major producers such as ArcelorMittal Nippon Steel India, Steel Authority of India, JSW Steel and Tata Steel.
Official data shows that India primarily exports low grade iron ore.
The steelmakers’ body has also sought fast-tracking of iron ore lease auctions and higher production of the ore from state-owned producers to meet the 2030 steel production target.
The ISA and the steel ministry did not immediately respond to Reuters’ emails seeking comments.
Earlier this year, the steel ministry refused to consider a proposal from small steel producers to levy an export tax on iron ore and pellets citing lack of evidence to suggest that exports had hit local steel producers, Reuters had reported in May.
In November 2022, India had scrapped a 50% export tax on low-grade iron ore, and 45% duty on pellets to boost shipments.
This article was generated from an automated news agency feed without modifications to text.