Ferro chrome producers such as Jindal Stainless and Visa Steel have urged the government to re-impose 30% export duty on chrome ore as India's insufficient reserves have been depleting fast.
Ferro chrome producers such as Jindal Stainless and Visa Steel have urged the government to re-impose 30% export duty on chrome ore as India’s insufficient reserves have been depleting fast.
Chrome ore is used for production of ferro chrome, an important raw material for making stainless steel. According to industry estimates, India has 54 million tonne or just 0.6% of the world’s total chrome ore reserves.
Finance minister Arun Jaitley had announced in the Budget removal of 30% duty on export of the raw material. The 30% export duty was prevalent since March 2012. Since March 2008, the export duty on the ore had been 3,000 per tonne.
“India does not have sufficient chrome ore resources and we feel that any export of chrome ore will be detrimental for the Indian ferro alloys industry. This will enable producers of ferro chrome from other countries, especially China and Malaysia, to dump ferro chrome in India,” the Indian Ferro Alloy Producers’ Association wrote in a recent letter to Jaitley.
India’s chrome ore exports had been on the wane since imposition of the duty.
From 329,000 tonne in 2012-13, it came down to 94,000 tonne in the previous financial year.
India is a net importer of chrome ore.