New Delhi, May 2 (KNN) India has decided against imposing tariffs on exports of low-grade iron ore for now, despite a significant rise in overseas sales to China, a source with direct knowledge of the matter revealed.

The decision comes after requests from small steel producers to curb rising exports were turned down, reported Reuters.

China remains the dominant destination for India's iron ore exports, accounting for more than 90 per cent of the total shipments. India is the world's fourth-largest producer of the steel-making ingredient.

Earlier this year, small and secondary steel producers in India had petitioned the government to consider an export tax on iron ore due to concerns over rising exports.

However, after examining the issue, the Ministry of Steel found no evidence to suggest that these exports had adversely impacted the country's steel producers, according to the source.

The mining industry in India has been opposed to any curbs on iron ore exports, arguing that the country primarily exports low-grade iron ore, which is not widely consumed domestically.

In contrast, small steel producers insist that they rely on low-grade iron ore, unlike larger steel mills, and steady supplies at reasonable prices are crucial for their relatively small profit margins.

Despite the concerns raised, India's iron ore exports witnessed a significant surge during the fiscal year ending March 2024, reaching USD 3.9 billion, an increase of 118 per cent compared to the previous year, as per government data.

With the Ministry of Steel finding no compelling reason to impose tariffs, India has decided to maintain the status quo on iron ore export policies, at least for the time being.

(KNN Bureau)