Government of India has abolished export duty on iron ore pellets in order to make the commodity more competitive amid weakening prices due to subdued demand.
Central Board of Excise and Custom has issued a notification mentioning that export duty on iron ore pellets has been reduced to zero from 5 per cent.
In 2014, the government had levied a 5 percent export duty on iron ore pellets, which are value-added products of leftover material or low-grade iron ore and are used in steel-making.
Reasons for decline in global commodity prices
- Due to global economic slowdown and decrease in demand followed by increase in supply (production) has attributed to decrease in global commodity prices especially minerals and oil.
- Steel and its related raw material market is facing a tough time on account of subdued demand and high production, adversely impacting the prices.
- Besides fall in demand in China, world’s largest metal consumer also has attributed to falling in commodity prices.