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Iron ore surplus rises sharply in Karnataka on falling demand, export ban

Iron ore surplus rises sharply in Karnataka on falling demand, export ban


News is brought to you by Mr. Shailesh Karia


Published on date 29th June 2020.


Karnataka is facing a glut of iron ore due to the restrictions imposed on its export from the state for the last 8 years. The restrictions have left Karnataka`s iron ore miners dependent on steel companies in the state and have resulted in a surplus of nearly 5.19 million MT of iron ore fines.


Supply in the state is higher compared to demand amidst production restrictions and the ban on exporting ore out of the state imposed by the Supreme Court. In 2019, total iron ore exports from other parts of the country were 10.34 MMT of fines and 1.116 MMT of lumps.


Eight years ago, the Supreme Court, while hearing a case related to illegal mining and illegal export of iron ore from the state, imposed a ban on export of iron ore from the state and imposed restrictions on production. All these steps were aimed at protecting the environment and state revenue.


Sources said,"The restrictions on trade of iron ore in Karnataka are suppressing the growth of the sector and having significant deleterious effects on the industry, and the public exchequer. While the rest of India is exporting iron ore in line with the EXIM policy of the government, an application by its members - Vedanta Ltd and Mineral Enterprises Ltd - for permission to export ore, which the steel and associated industries in the state are not willing to purchase in the e-auction, are pending before the Supreme Court."


Source :  https://www.business-standard.com/


 





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