Iron ore exports dip 22% in April-July: FIMI

Exports of iron ore declined by about 22% to 25.2 million tonnes in April-July due to the ban on its shipments from Karnataka, industry body FIMI today said.

Releasing the provisional data of exports, the Federation of Indian Mineral Industries (FIMI) said the country had exported 32.3 million tonnes of iron ore during April-July last year.

Exports in July fell by about 23% to 3.6 million tonne, the second highest decline in a month this fiscal after 29% decrease in April.

Exports in April stood at 8.1 MT as compared to 11.4 MT in the year-ago period.

Shipments dipped from almost all major ports in the southern region due to subdued supply from Karnataka, which accounts for about one-fourth of total iron ore export from the country.

However, exports improved from ports in Paradip, Vizag, Moramugao & Panjim and Gangavaram during the four months.

The Moramugao & Panjim port registered the highest exports at 15.5 MT during April-July, followed by Paradip which exported 3.5 MT.

Karnataka has banned transportation of the mineral for exports purposes from the state since July last year.

"The exports have declined mainly on account of ban on shipments from Karnataka. The second factor affecting production and less shipment is monsoon," FIMI Secretary General RK Sharma told PTI.

The Supreme Court in an order in July this year had banned all mining activities in Bellary in Karnataka, which accounts for about 80% of the state's total iron ore production at 16 million tonnes per annum (MTPA).

The apex court in its subsequent hearing later on August 5 partially lifted the ban but said that iron ore produced from the Bellary region will not be exported.

Sharma added that given the scenario, including duty hike in the Budget, the total exports this fiscal is going to be about 75 million tonne only. The country had docked about 98 million tonne iron ore last fiscal.

The government in the Budget had hiked duty on iron ore, both lumps and fines, to 20% in order to discourage exports and encourage value addition within the country.