As domestic prices calm, duties on iron ore and steel slashed: Centre

NEW DELHI: The government on Saturday withdrew export duties imposed six months ago on steel and its inputs after their domestic rates sobered, allaying previous inflationary concerns, according to the Union finance ministry, which withdrew its May 22 decision to boost their exports.

“The central government has restored the status quo as was prevailing prior to 22nd May, 2022 and withdrawn the export duty on iron ores lumps & fines below 58% Fe content, iron ore pellets and the specified steel products, including pig iron. The import duty concessions on anthracite/PCI coal, coking coal, coke & semi coke and ferronickel have also been withdrawn,” the ministry said in a statement on Saturday.

The decision to withdraw exports duty on iron ore and steel items is influenced by two factors – domestic prices of these product groups no longer responsible for high inflation as they are sufficiently available at reasonable rates, and the export curb has been one of the major factors for contraction of exports in October this year, two officials aware of the development said, asking not to be named.

India’s retail inflation, as measured by the Consumer Price Index (CPI), fell below 7% at 6.77% in October, which is significantly low compared to the September print of 7.41%, but still far away from the Reserve Bank of India’s upper tolerance limit of 6%.

In October, India’s merchandise exports declined 16.65% to $29.78 billion, mainly due to global headwinds.

Exports of iron ore alone saw over 72% decline in April-October 2022 at $2.4 billion compared to $666 million in AprilOctober 2021.

HT on September 19 reported that the government was considering reducing duties on exports of iron ore and steel products.