India raised iron ore export duties to 30 percent from 20 as it seeks to conserve supplies for its own steel industry, sending down shares of iron ore producers and boosting those of steelmakers. The government issued a formal order removing the previous 20 percent duty, and two revenue officials said this meant the rate reverted to 30 percent, which one of them said was the "peak tariff" level.
"The new rate is 30 percent on both fines and lumps," said R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries. The rates were effective December 30, he said. "This move appears to have been taken to appease the country's steel lobby, which has been demanding such a hike," Sharma said.
India is one of the world's biggest exporters of iron ore, with much of its product bought by China, which has the world's largest steel industry. Exports from Asia's third-largest economy have fallen sharply due to increases in taxes and freight rates, while shipments from Karnataka state, one of the country's biggest producers, have stalled over a legal wrangle. Sesa Goa, a major ore seller, said in November that India's exports had already probably fallen by a third in 2011 to 65-70 million tonnes.
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