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Iron ore producers in India reducing iron ore trade transactions recent weeks, because the iron ore producers wait for a decision setting the iron ore export duty issued by the Indian government. Indian government policy on iron ore export tax in order to strengthen the steel industry sector in the country. But government policy is detrimental iron ore producers because they will add to the cost of iron ore exports. In December last year, the Indian government has raised export tax on iron ore lumps from 5 percent to 10 percent and imposed a fine of 5 percent.

Indian government policies increase iron ore export tax on iron ore producers disadvantage, because the global iron ore demand had a significant increase to the increase of iron ore producer incomes. On the other hand, Indian government policies benefit the company in the steel industry, because the supply of iron ore get enough of the country with a cheaper price.

Iron ore producers said, this condition due to lack of lobbying power of the iron ore producers influence government policy on trade in iron ore in India.

Manish Pande, regional manager, CRU India, said, “In India a strong steel lobby has demanded suspension of export of iron ore for a long time. The lobby is not strong iron ore for the industrial structure fragmented and has been crying violation of restrictions such as tax increases export recently. ”

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