India Holds Off on Export Duty Hike for Low-Grade Iron Ore, Pellets

India is unlikely to raise export duty on low-grade iron ore and pellets in the near term, as strong resistance from the domestic mining industry delays the government’s plans. Officials had been considering a hike of 20–30% from the current zero duty, but growing opposition has slowed decision-making. Industry groups, including the Federation of Indian Mineral Industries, argue that low-grade ore is not consumed by domestic steelmakers and restrictions would hurt miners. State governments of Odisha and Goa, both major iron ore producers, have also voiced opposition. Meanwhile, iron ore prices have climbed in recent months due to monsoon-related supply disruptions. Experts note that the steel industry’s main challenge lies with the higher cost of medium- and high-grade ores, not low-grade ones. India previously imposed steep duties on ore and pellet exports in May 2022 but rolled them back months later after miners reported significant export losses.