In a move that may be construed as an attempt to appease the domestic steel industry ahead of the general elections, the finance ministry on Monday imposed a five per cent export duty on iron ore pellets. The government had raised export duty from five per cent on fines and 15 per cent on lumps into a uniform 20 per cent in March 2011 and to 30 per cent in December 2011. However, iron ore pellets were exempt from the duty. In 2012-13, exports of iron ore pellets were negligible. Iron ore exports took a hit after the Supreme Court imposed a ban on mining last year, following widespread scandals in Karnataka and Goa. India’s biggest destination for iron ore exports is China. Considering the increase in the average speed of packing machines, it also increased the duty on paan masala and tobacco products along with a revision in the capacity of production.

(Business Standard)