Just as suddenly as the government had levied an export duty of 15% on most key grades of steel and 45-50% on raw materials like iron ore and iron ore pellets in May this year, it scrapped those duties effective immediately.
The Centre decided to abolish the export tax on iron ore lumps and fine and pellets. India scrapped an export tax levied on low-grade iron ore lumps and fines with below 58% iron content, reversing an earlier order from May when it had raised the tax to a steep 50% to rein-in inflation.
In the notification, the government also removed the export tax on some steel intermediates from 15%, also imposed in May. India has also lowered the export tax on iron ore and concentrates other than roasted iron pyrites to 30% from 50%. "The Central Government, on being satisfied that it is necessary for the public interest so to do, hereby makes the following further amendments," the notification said.
India's iron ore exports had dropped to "nearly zero" in October due to higher export taxes and were further expected to languish due to lower demand from China, Producers of low-grade ore depend largely on overseas markets, as most major domestic steel producers consume high-grade iron ore, the Federation of Indian Mineral Industries (FIMI) said earlier this year.
