Karnataka urge centre on removing iron ore exports restriction

23 july 2018

Miners in Karnataka, who were battling for removal of restrictions on iron ore exports, have now urged the Centre to check imports that has begun to hurt their operations. In a letter to the commerce ministry, Karnataka miners have also requested the Centre to disallow all outside sourcing by steel firms in the state and make them meet their raw material needs through local procurement. This will help the state mining industry liquidate mounting ore stocks, which is rising by over 4.5 million tonnes a month. They have also approached the Supreme Court for permission to export pellets as manufacturers are operating at sub-optimum capacities.

The Federation of Indian Mineral Industries said iron ore produced in three districts of Karnataka – Bellary, Chitrdurga and Tumkur is being sold through e-auctions, conducted by a monitoring panel. It said that “Only existing end-users like steel, pig iron, pellet manufacturers, sponge iron and beneficiation plants, which are wholly or partially dependent upon ore from Karnataka for their use, can participate in auctions.”

FIMI secretary general RK Sharma said that “But iron ore so purchased by pelletisation or beneficiation plants in the Karnataka cannot be exported as exports are permitted from other states.”

Mr Sharma said that “Iron ore produced in Karnataka can only be sold to a restricted group of purchasers, while consumers in the state are allowed to procure ore from Karnataka as well as other states and even import. It has created a skewed market.”

Source: FINANCIAL CHRONICLE