Export Duty to Impact Iron Ore Industry: UCCIL's Stark Warning
UCCIL has cautioned that proposed export duties on low-grade iron ore could trigger a decline in production, affect domestic prices, and weaken India's export standing. The measure may cause sector instability with severe economic repercussions, including a collective loss to the exchequer and endangerment of livelihoods.
- Country:
- India
The Utkal Chamber of Commerce & Industry Ltd (UCCIL) has issued a dire warning regarding the central government's plan to impose a 30% export duty on low-grade iron ore starting from October. This measure, UCCIL argues, could significantly impact production within the industry and result in plummeting domestic iron ore prices.
The organization's concerns extend beyond immediate industry effects, suggesting the duty could destabilize the sector, erode export competitiveness, and potentially incur long-term capacity losses. Additionally, UCCIL highlighted potential adverse effects on employment, regional economies, and industrial output across the states where mining operations are predominant.
Odisha, a key player in iron ore production, accounting for 55% of the nation's output, could face severe economic consequences. UCCIL estimates a substantial annual loss of over Rs 10,000 crore to Odisha's economy if the proposed duty is implemented, threatening the livelihoods of countless individuals dependent on mining operations.
- READ MORE ON:
- UCCIL
- iron ore
- export duty
- India
- Odhisa
- economy
- production
- employment
- domestic prices
- livelihood
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