New Delhi: Steel Minister Ram Vilas Paswan has said that the government is mulling over increasing export duty on iron ore to ensure its supply security to domestic steel producers.
“Government is considering to enhance export duty on iron ore,” he said.
The government imposed a 15% ad-valorem export duty on iron ore in June.
Last month, industry body Assocham asked the government to hike export duty on iron ore to 35% to ensure its availability to the domestic steel manufacturers and bring in price stability.
Earlier, the steel ministry had proposed a hike in export duty to 20%.
When asked if government would impose export duty on finished steel products to increase its domestic availability, Paswan said: “When prices in the market are stable, we will not do something which is against the industry.”
Expenses on iron ore alone contribute around 25% to the total cost of steel-making.