Assocham for total ban on iron ore exports

Chiming in on the controversy over iron ore exports, industry body Assocham said on Saturday that such exports should be banned in all ore producing states in order to preserve the natural resource for future value addition within the country.

"While India is exporting its natural resources to China, that country is building up an inventory for future use without exploiting its own resources. So there should be a ban on iron ore exports from all producing states to conserve it for future value addition with in the country," D S Rawat, secretary general of Assocham, said in Bangalore.

The chamber also hailed the decision of Karnataka government to ban ore export. "We would like to appeal to the state governments of Orissa, Chhattisgarh, and Jharkhand among others to ask the centre for a total ban on iron ore exports," he added.

As the domestic steel industry has laid out a road map for using iron ore 'fines' in the country, the product should not be exported, he added. The pro-export lobby says India doesn't have the capability to process fines, so these should be allowed to be exported.

Rawat said China imports iron ore from various countries including India, and is preserving its own natural wealth. It is using the wealth of others to fuel its industries. Nearly 85 per cent of iron ore exports from India go to China, he said.

The chamber had suggested the ban on these exports be carried out in a phased manner, since mining firms plead that lakhs of people are involved in the industry and it is a question of their livelihoods.