In Commodity News 01/05/2015
India is considering a proposal to renew long-term agreements (LTAs) for supply of high-grade iron ore to Japan and South Korea, Parliament was told.
“The government has long-term agreements for supply of high-grade iron ore to Japan and South Korea through MMTC. A proposal for renewal of LTAs (for three years with effect from April 1, 2015) is under way,” Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha.
She said negotiations on quantity and price will commence after approval of renewal of LTAs.
Iron ore exports to Japan and South Korea under the LTA are largely made from NMDC mines in Bailadila, Chhattisgarh.
“The export of iron ore is presently under open general licence. High-grade iron ore is canalised through MMTC. Exports are determined by availability and international market situations,” she added.
In a separate reply on pharmaceutical exports, she said the reasons for exports not reaching USD 25 billion in 2014-15 include recession in Europe, China’s increased competition in formulations sector and international sanctions on Russia.
“There is a downward trend in the prices of drugs in Germany for the last 1-2 years, which resulted in lesser growth rate of pharma exports to Germany,” she added.
Replying to a separate question, the minister said that steel imports from neighbouring countries increased have increased on large scale.
During April-February 2015, steel imports from Bangladesh, Bhutan, China, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka have increased to Rs 16,576.5 crore from Rs 6,993.65 crore during the full fiscal of 2013-14.
From China, the imports have jumped to Rs 15,534.84 crore during April-February 2015 from Rs 5,921.24 crore in 2013-14.
