Indian government has raised excise duty on bauxite to 30 per cent in yesterday’s Union Budget 2017-2018. Prior to this, there was no duty on the aluminium ore produced for sale (inland). Now, aluminium producers have to pay a duty of 30 per cent for selling the mineral ore in the domestic market. 
India’s bauxite consumption in FY2014-2015 stood at 15.2 million tonnes. Production of the ore was estimated at 20.2 MT, of which a significant percentage was used for domestic consumption while the rest was exported (6.8 MT). Bauxite imports amounting to 1.8 MT account for 11.2 per cent of India’s total aluminium ore consumption. 
Source: India Minerals Yearbook 2014
The import of bauxite by India has been decreasing year-on-year since 2013. In 2013-14, India imported 4.21 MT of bauxite which declined to stand at 1.8 MT in 2014-2015. In 2015-16 till December, the total bauxite import is estimated to total at 0.08 MT.
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Bauxite exporters in India have been seeking a total removal of duty on the ore’s export. Presently, export duty of bauxite stands at 15 per cent down from 20 per cent as decided in 2014 Union Budget. However, no decision has been taken yet on that issue. It seems, the exporters have to wait a little longer for their demand to be heard.
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