FIMI's pre-budget proposal to the Finance Ministry, abolition of export duties on bauxite

The Indian apex body promoting the interests of all mining companies, the Federation of Indian Mineral Industries (FIMI), has called for the withdrawal of export duties on bauxite, stating that the move will lead to the optimal exploitation of low-grade mineral resources by facilitating the reopening of closed bauxite mines, creating jobs, and earning foreign exchange.

In its pre-Budget proposals to the Finance Ministry, FIMI said, "The export duty of 15 per cent on bauxite is detrimental to the Indian non-metallurgical bauxite producers and exporters. Therefore, this Federation requests the complete withdrawal of export duty on bauxite exports."

It said that India is self-reliant in meeting its requirement and has enormous potential to be a significant player in the international bauxite market.

The Indian alumina and aluminium producers have their captive mines or meet their demands from mines located in the eastern and central regions of the nation, which accommodate plant-grade bauxite.

Furthermore, bauxite deposits existing on India's west coast are low in alumina content and high in silica and are technically not appropriate and economically unfeasible for the refiners in the country for producing smelter-grade alumina. In some countries, however, low-grade bauxite is acceptable due to the scarcity of the mineral and the availability of technology.

There are more than 50,000 labourers directly and indirectly employed in Gujarat's Jamnagar/Porbandar region from the export of substandard non-plant grade bauxite from the country's west coast.

The Miner's body FIMI added, "It also leads to a vibrant economic ecosystem for local communities, stevedores and other related ancillary industries."

In addition to earning foreign exchange and reducing the skewed trade deficit, this generates revenues for the exchequer through royalties, port dues, and taxes. In Maharashtra and Gujarat coastal regions, low-grade bauxite is more available than the domestic demand, which led to exports.

"However, after the imposition of an export duty of 15 per cent on bauxite, the production and export of the ore have been adversely affected", FIMI added.

For export market share, India fiercely competed with countries such as Australia, Guinea, Indonesia, and Malaysia in the past. It is, however, uneconomical to ship bauxite abroad because of the export duty.