Mining industry wants Union Budget to remove the export duty because of international market trend

It’s still some days left for the Budget announcement and every industry in India has its respective share of hopes from the budget session. Similarly, the mining industry of Goa hopes that the upcoming budget would scrap the 10% export duty that proves to be problematic for the industry players.

Not only this, the industry also wants permission to dump their waste outside the lease area, which would happen if the budget induces some changes in the MMDR Act.

Goa CM Laxmikant Parsekar recommended the same changes to the government in the recent past. Both the mines ministry and the commerce ministry want the duty to be scrapped, so that the industry can flourish better. This is so because the international price of low-grade ore with Fe content of 56% has gone down drastically, and in this scenario, the mining industry won’t be able to do well in the presence of the export duty.

Last month, the Goa mineral ore exporters association (GMOEA) had approached the PMO to seek his support in scrapping the export duty. They also said that doing so would yield more revenues, leading to $750 million a year.

Talking of the industry, Goa mainly produces low grade iron ore (with iron content between 55-58 per cent), which is largely exported. Now that the international price has gone down, the miners think that the current tax mechanism is quite unfair.

The current trend in international market hints that the price can go even down, which is why the miners from Goa are really looking forward to the budget for some favorable announcement on the part of the finance ministry.

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