Iron ore exports in H1 FY14 have declined by 56% to 8.2 MnT which were at 14.65 MnT in H1 FY13.
Iron ore exports from India have been declining gradually over the passing time. India was once the third largest Iron ore exporting country in the global market. Lately, it is losing its position as its exports quantity is declining year after year.
Mining banin Goa is the main reason for the major decline in export of the raw material. Since September 2012, mining has been prohibited by the Supreme Court in the state. On 5October, 2013 court ordered suspension of mining operations and transportation in Goa. Also, mining bans in Karnataka resulted in decline of the raw material exports. Although, the ban was partially lifted soon after its imposition, the mining operations are not yet resumed in full pace in the state. There is no permission up till now from the Apex court to resume export of Iron ore from Karnataka.
Furthermore the overall exports of Iron ore Y-o-Y basis have also been witnessing a gradual decline from past three years. The total export of the raw material in FY13 was 18.08 MnT as compared to 61.7 MnT of FY12 and 97.6 MnT in FY11. In FY14 the total exports are expected to reach around 13-14 MnT. Besides mining ban in Goa, high export duty of 30% and increased freight charges by Indian Railways are also the reasons affecting the waning export of the raw material.
Indian Iron ore had been in great demand from Chinese market because of its quality. The continuous demand for Indian raw material will keep its export lively in upcoming years as well. The iron ore exports quantity might decline to 6-8 MnT annually but will not diminish even in future. Indian Iron ore is in demand in the global market owing to its quality and price. The exports will surely come back to its form again even if the time exceeds over a decade or longer.