Utkal Chamber of Commerce & Industry Ltd (UCCIL) has issued a warning regarding the government’s plan to impose a 30% export duty on low-grade iron ore, stating that such a move would significantly impact production, domestic prices, and India’s export competitiveness. The duty is expected to take effect in October.
In a statement, UCCIL expressed concerns that the proposed export duty would lead to sector destabilization, resulting in decreased production and crashing domestic prices, alongside long-term capacity losses. The chamber stressed that these effects would extend to employment opportunities, regional economies, and overall industrial output.
UCCIL has urged the Government of Odisha to safeguard the state’s iron ore mining industry amidst discussions at the central government level about imposing this export duty. The organization highlighted that the proposed measure could devastate the sector, potentially resulting in a collective loss exceeding ₹16,200 crore for mining-dependent states and jeopardizing the livelihoods of over five million individuals reliant on the industry.
According to estimates, iron ore production in India is anticipated to reach approximately 277.83 million tonnes for the year 2024-25. Odisha is recognized as a major iron ore producing state, contributing 55% of the country’s total output. Key producers for this period include NMDC Ltd, Odisha Mining Corporation, SAIL, Tata Steel Ltd, and JSW.
In a letter addressed to Odisha Chief Minister Mohan Charan Majhi, UCCIL underscored that such a government decision would adversely impact state revenues and threaten the viability of mining operations, as well as the livelihoods of thousands in economically vulnerable regions. Industry estimates indicate that the imposition of the proposed export duties could incur losses of over ₹10,000 crore annually to Odisha’s treasury.
Published on September 21, 2025.
