Let me explain the history behind this. There used to be no export duty on Pellets for a long time.
In 2014, Govt of India imposed 5% export duty on pellets.
Only 5% duty led to closure of lot of pellet units and loss of thousands of jobs.
Why did that happen?
Because almost all pellet makers buy iron ore at market rate, convert it into pellets and sell with a 5-10% margin only.
Even a 5% duty killed the pellet industry in India.
Govt realized its mistake and removed the pellet duty in 2016
The govt has freely allowed pellet exports and has reiterated this many times.
However, some parts of Congress keep on filing these cases that pellet export is illegal and govt should impose the duty.
GPIL has its own mine and big margins. 5% duty doesn’t matter for GPIL at all.
But hundreds of small pellet makers will close down with just a 5% duty and lead to loss of lot of machinery, factories and jobs.
This is more of political petitions filed by some Congress guys. Do search history and you will find Congress links in these petitions.
Imposing an export duty is a very anti-business move today.
And small pellet makers who work on 5% margin will go on a march and campaign against the government with even 5% duty.
Basically, the govt wanted pellet industry to develop in India, and that’s why it removed the export tax of 5%. Lot of small businessman and even big ones like JSPL, JSW, Tata have invested in pellet plants.
Putting export duty of even 5% will kill margins, create unemployment with no end benefit. The govt also understands this…and this petition or its various forms has been filed many times and replies also given. Questions also asked in parliament, and govt reply has been recorded already in this matter.
You will find all this on google search.
For example this reply by the govt- do read it.
This petition happens at least once every year.
Last year also, this happened-