The Centre is looking into a proposal by the steel industry, especially from Bengal, to ban the export of iron ore and pellets from India to improve the availability of these key raw materials in the domestic market.

Participating at the annual general meeting of the Merchants’ Chamber of Commerce, Union steel minister Dharmendra Pradhan on Thursday said the representation by the Bengal industry was a “good suggestion” and he would look into the matter.

Admitting that there is a shortage of iron ore, Pradhan said: “We are talking to the stakeholders concerned, that can be an option.”

Lalit Beriwala, director of Shyam Steel, informed the minister that there was a crisis of iron ore because of the closure of mines in Odisha. Prices of iron ore and pellets have shot up. Moreover, the supply has dried up, threatening the closure of the mills in Bengal.

Pradhan suggested that central PSU OMDC should be allowed to use closed mines till the situation normalises. The minister said he had spoken to OMDC about it but the state government has to take the initiatives.

The minister, however, refused to intervene in increasing steel prices, saying it is a demand-supply issue.
In 2019-20, the total production of iron ore was 250 million tonnes in the country, while domestic demand was 180 million tonnes.