Daijiworld Media Network – Panaji (RS)

Panaji, Sep 7: With just less than ten days left for iron ore export season to begin in the state, the Goan exports are battling with dearth of port infrastructure coupled with the export tax, contributing to lessening of projected figures by 15 per cent, this year.

Goa, India’s largest iron ore exporting state, trades 40.53 million tonnes of ore through its two ports. Of this, 30.89 million tonnes is produced in Goa alone. China which imports 30.27 million tones is a major international market for the product exported from Goan shores.

“There are various reasons for why the export expects to take a dip. Export tax levied to the tune of Rs 300 per ton is one amongst them,’’ stated K Shridhar, executive director, Goa Mineral Ore Exporters’ Association.

The state exports ore through its two ports – Mormugao port trust (MPT) and Panaji port. These ports also facilitate ore export from neighbouring Karnataka.

The iron ore exports fear bleak export scenario after ten days when the season will start. The exports, usually, come to almost halt in May and re-start on September 15 owing to monsoons.

Doubling up for the worries, one amongst the two ship-loaders at berth number nine at MPT, is out of order.  The berth contributes for major exports as out of 26 million tones exported from MPT last year, berth number nine had 12 million ore being exported from it.

“The breakdown is surely going to affect the exports… We have requested the port to get it repaired as fast as possible,’’ Shridhar said expecting the loader to be functional by December, this year.

Thinking positive, the exporters feel that the breakdown, which has come during off-season, is the silver lining in the clouds. ``If the breakdown had to happen after season starts, we would have been more in trouble. Now at least we have a choice whether to stack the ore in the port or use barges (vessels) to carry the ore to transhippers,’’ Shridhar said.

Possibility of prolonged monsoons is also considered as an important aspect in aggravating exporters’ problems.  

On financial front, the exporters feel that the Goan industry, which brings in money to the tune of Rs 5,000 crore, equivalent foreign exchange, will not suffer financially as the ore prices have hiked substantially. ``Last year, the price was 9.5 per cent more than the previous year,’’ Shridhar said.

The exporters, however, are worried that they would not be able to cater to the large demand created in the market. For ore exported from Goa, china contributes for 74 per cent while all India level 85 per cent of the iron ore is sent to the eastern neighbours.

Besides China, Goa caters to Japan, Rumania, Netherlands, Belgium, Turkey, UK, Italy, Germany, South Korea, Pakistan, UAE, Oman, Kenya, Taiwan, Kuwait and Qatar.