Lok Sabha Question No. 1163 (UNSTARRED), answered on 2017-07-24
Subject: Export of Iron Ore
Ministry: COMMERCE AND INDUSTRY
Asked by: RAM TAHAL CHOUDHARY, LAXMAN GILUWA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1163(H) TO BE ANSWERED ON 24 th  JULY, 2017

## EXPORT OF IRON ORE

## 1163(H). SHRI RAM TAHAL CHOUDHARY: SHRI LAXMAN GILUWA:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether the export of iron ore is increasing every year whereas the domestic need of iron ore is not being met ;
- (b) if so, the details thereof and the total demand of iron ore in the country along with the  total  export  of  iron  ore  from  the  country  during  the  last  three  years  and  the current year;
- (c) whether various industries are on the verge of closure due to non-supply of iron ore and are unable of utilize their capacity; and
- (d) if so, the details thereof along with the reaction of the Government thereto and the corrective measures taken by the Government in this regard?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

(a) & (b):  As per DGCI&S data, export of iron ore during last three years and current year  has  shown  a  fluctuating  trend.  Details  of  total  demand  (consumption) and export of iron ore for this period are given in the table below:

(in million tonnes)

Source:  Demand (Consumption) - JPC/IBM and Export - DGCI&S, Kolkata.

| Year                    | Demand (Consumption)   | Export    |
|-------------------------|------------------------|-----------|
| 2014-15                 | 113.48                 | 7.29      |
| 2015-16                 | 122.10(E)              | 5.44      |
| 2016-17                 | 131.38(E)              | 30.54 (P) |
| 2017-18 (Upto May'2017) | NA                     | 6.08 (P)  |

(P) =  Provisional,  (E) = Estimates on the basis of GDP growth rate @7.6%.

- (c) & (d) :  Production of iron ore during the last three years is more than the domestic consumption and exports. Production of iron ore in the country is sufficient to meet  the  domestic  requirement.  Iron  &  Steel  being  deregulated  sector, capacity utilization of plants is based on commercial consideration.  Iron ore of  Fe content above 64% (other than of Redi origin to all markets and Iron ore of Goa origin when exported to China, Europe, Japan, South Korea and Taiwan  irrespective  of    the  Fe  content)  is  regulated  under  Foreign  Trade Policy 2015-20 by way of canalization through MMTC  Limited.   Government has  levied  an  export  duty  @  30%  on  iron  ore lumps/fines above 58% Fe content. This is done to ensure that the overall demand for high grade iron ore in the domestic market is taken care of. Therefore, steps/measures are already in place to regulate exports of iron ore.  Government has also notified Mines and Minerals (Development and Regulation) Amendment Act, 2015 to streamline grant of mining leases in order to maintain sufficient availability of raw materials for the various sectors including steel sector.

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