Mumbai: The government is considering a proposal to further increase the export duty on iron ore to ensure its availability to domestic steel producers, Ram Vilas Paswan, minister for steel, said.
 
"Government is considering enhancing export duty on iron ore," he said.

The government imposed a 15 per cent ad-valorem export duty on iron ore in June. The steel ministry has now proposed to raise it to 20 per cent.

Last month, industry body Assocham asked the government to hike export duty on iron ore to 35 per cent to ensure its availability to the domestic steel manufacturers and bring in price stability.

Paswan, however, said the government may not disturb the market for finished steel where prices are more or less stable.

''When prices in the market are stable, we will not do something which is against the industry," Paswan said.

''As per the present indications, further correction in the prices of steel is expected. However, the prices of critical inputs such as coking coal have increased more sharply than prices of steel," Paswan added.

Steel companies have been holding prices for the past few months despite a sharp rise in the prices of raw materials, including iron ore and coke.

A slackness in the international markets has now forced steel producers to hold on to the price cuts for some more time.