India’s bauxite exports to ebb in Q2 FY2018; PM calls for faster mine operationalisation

After hitting the highs of around 1.28 million tonnes in Q2 FY 2016-17, India’s bauxite export is inching towards a decline, as steep as 59.7per cent year-on-year, reveals global export-import trade estimate. The country exported an estimated volume of 4.12 million tonnes of bauxite in 2016, down from 8.11 million tonnes in 2015. The decline was attributed to the high custom duty imposed on the export of the mineral ore. Though it was expected earlier that Indian bauxite exports will rejig in 2017, the trend does not seem to be progressing in that direction.

In Q1 FY 2017-18, Indian’s total bauxite export was estimated at 622,143 tonnes, up from 287,451 tonnes in the corresponding period previous year. In Q2 FY 2017-18, the volume is estimated to rise to 516,550 tonnes. However, this is in stark comparison with last year same period’s export volume of 1.28 million tonnes.

Value of bauxite export by India was estimated to stand at around US$22 million in Q1 FY 2017-18. This is an increase from the value of exports reached in the same period of previous year- US$17.3 million. In Q2 FY 2017-18, the value of exports is estimated to come down at US$17.8 million, down from US$59.3 million in Q2 FY 2016-17.

India has been exporting its major chunk of bauxite to countries in the Middle East, Europe, South East Asia, and China. However, with Guinea, Brazil and Australia ramping up production, India’s bauxite exports are forecasted to decrease in the medium term.

{googleAdsense}

In a recent government release, Prime Minister Narendra Modi called for a faster operationalisation of mines after their auction.

"The Prime Minister emphasised on a roadmap for faster operationalisation of mines, post-auction," the release said.

Union Power Minister Piyush Goyal and senior officials from the PMO, NITI Aayog and other ministries were present at the meeting held in New Delhi on Friday, July 21.