On the contentious issue of iron ore exports, the steel ministry said that except for state-owned National Mineral Development Corporation, other producers increased the price of lumps by Rs 500 to Rs 1,000 a tonne after the duty on exports were imposed. In view of high demand from steel producers and sponge iron producers for good quality ore (lumps), there was a need to further disincentivise exports by banning them and enhancing availability by 7.4 million tonnes, albeit it would entail a revenue loss of about Rs 830 crore, it said.

The Ministry, however, proposed another option of hiking the export duty to 20 per cent from 15 per cent that will help the government rake in additional revenues of Rs 2,583 crore, the ministry said, adding the mines ministry should be taken on board while deciding on the issue.

The steel ministry is also not at loggerheads with the industry on the issue of prices as is being made out in the media. This is because domestic steel utilities have so far addressed the government’s concern on inflation by exercising a self-declared moratorium on prices and hold on to the new price line for three months ending this month. But the ministry has asked the industry to continue to share the government's concern.

The industry representatives informally said yesterday at a steel conclave that domestic prices are unlikely to rise with global steel prices gradually stabilising. However, any move to hike prices of flat and long products could attract fiscal measures, government sources said.

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