The government has reduced the export duty on iron ore pellets to zero from five per cent, a move that will make the commodity more competitive amid subdued demand and weakening prices.
The government in 2014 had levied a five per cent export duty on iron ore pellets, which are value-added products of leftover material or low grade iron ore and are used in steel-making.
Reason
Iron ore pellet makers as well as some miners had urged the government to reduce the export duty on iron ore as it would help in making the commodity more competitive.
Steel and its related raw material market is undergoing a tough time on account of subdued demand and high production, which is adversely impacting the prices.
Besides, fall in demand in China, the worlds’ biggest metal consumer, is leading to the country dumping excess steel and other finished products in consuming countries, including India, a move that has impacted the top and the bottomline of the mining and steel companies.
The development comes after mining and related industries approached the government, last year, to provide exemption to them on the lines of those provided to state-run mines NMDC.
Current Affairs: 5th January, 2016 Current Affairs Round up December, 2015.
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