Iron ore exports from India look to be a ‘party over’ iron ore exporters those who were actively involved during 2004-2011.
Sometime in the year 2003, Mr. Manik Parida, a small time truck owner in the small dusty town of Barbil in Odisha, today owns a fleet of 100 trucks and 2 imported cars. All thanks to Iron ore boom in China that started in the year 2002. Nobody knew that red stones having Iron content will be as precious as Gold.
Indian exporters made plenty of money during this period when Chinese infrastructural growth was at peak. Although, the growth story of Iron ore exports from India now seems to have come to an end especially after the Government realized that fulfilling Iron ore requirement in domestic market is first priority.
The Indian government has put all its efforts to restrict exports of Iron ore from India by imposing an export duty of 30% in the year 2011 and levying a differential based freight for exports of Iron ore, if carried through railways.
Indian Iron ore exports which were booming in the year 2009-2011, had taken a major hit back after government’s directives to reserve key raw material for domestic use came into effect. On the other hand, Supreme Court’s ban on exports of the key raw material from Karnataka & Goa, on recommendation of Justice MB Shah Commission made India lose its shine in global Iron ore market. India, which used to be third largest exporter of Iron ore in the world, is now not counted among major destinations of Iron ore.