The government has decided not to allow chrome ore exporters to exceed last year’s 4 lakh tonne quota, following repeated requests by a large section in the steel industry who argued that exports were hampering domestic steel production. The mining sector has been at loggerheads with steel makers over chrome ore exports since the quota expired in September 2003.While manufacturers said they were having to import back the ore after value-addition at much higher prices, exporters held they would lose revenues and market share unless the quota was doubled. ‘‘It seems the government has finally accepted that chrome ore, a key input for steel industry, is a strategic, non-renewable resource. In fact, we want the quota reduced further. At a time when domestic steel demand is growing 17-18 per cent, why should we export chrome ore and import it back as an input at far higher costs?’’ sources in the steel industry said.Chrome ore is typically exported at $50-60 a tonne though imports after value-addition range between $1,000 to $2,500 a tonne, depending on the intended use for ferrous chrome ore or steel. Besides, since India’s chrome ore exports were far higher than its proportional share of worldwide reserves, doubling the quota may have speeded depletion.‘‘Though India produces 13 per cent of the world’s requirement for chrome ore, it has only 1 per cent. But Africa, which has 85 per cent of the world’s reserves, exports only 47 per cent. Why should India allow this discrepancy,’’ sources added. Another pending matter for steel makers is semi-treated chrome ore, not covered by a quota till last year, which, along with the ore, took overall chrome exports, as per the Metal Bulletin, to 1.1 mn tonnes, including concentrate in 2002-03.
