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【Ferro-alloys.com】The Federation of Indian Mineral Industries (FIMI) has written to the Union Commerce Secretary to allow export of iron ore, chrome ore and manganese ore directly and “without any restrictions”, instead of going through the canalisation route.

The industry body has expressed reservation on appointment of any canalisation agency; and pointed out that canalised exports have not helped the trade or shored up export numbers of these minerals.

Canalising agency
Earlier in September, an office memorandum of the Ministry of Commerce and Industry suggested that canalising agencies like MMTC, STC and PEC are to be de-notified as canalised / nominated agencies for “all businesses in EXIM Policy”. The memorandum mentions that the “Line Ministry can nominate their PSUs” as a canalising agency for export of related commodities.

“However, the suggestion to continue to keep these minerals under the canalised agency under the line Ministry will defeat the very purpose of denotifying MMTC as canalising agency ...” FIMI said.

Cost of exports
The industry body said, MMTC – as a canalising agency – used to levy a three per cent service charge of the FOB value for (canalised ) exports of these three minerals – high grade iron ore, manganese ore and chrome ore. This in turn added to the cost of exports and making them costlier in overseas markets.

“We would request you not to canalise exports (of high-grade iron ore, chrome ore and manganese ore) through any agency and allow exporters to export these minerals freely without any restrictions. Such a facilitation would not only boost the exports of these minerals but will promote ease of doing business,” the FIMI letter said.

• [Editor:zhaozihao]