Mumbai, India (PressExposure) October 18, 2011 -- With close to 25 million tones of iron ore lying idle in Karnataka following a ban on its exports, the stand alone iron ore exporting firms have started feeling the pinch. Over 60 iron ore exporting firms who had already paid full consideration to mine owners for meeting their export commitments through bank finances are now seeing their balance sheet stretched.
"The sudden ban on exports has hit us hard. We cant even move our cargo for which we have already paid the price. We still have to service the debt," said Mr. Soumit Ranjan Jena, managing director, Pisces Exim India, a leading exporter of iron ore to China adding that the exporters should not be penalized for illegal mining carried out by mine owners.
"The condition is not in favour of exporters. We operate on a very thin margin of around three per cent which could be hit any time because of government's abrupt decisions like these," said Mr. Praveen Kumar, chairman, Maya Iron Ores. He expects his overseas shipment of iron ore to drop by 20 per cent in the current fiscal. "During the previous fiscal, we had exported 95 metric tones of iron ore. We don't expect it to cross 70-75 metric tones this fiscal." He added.
India exported 97.5 million tones of iron ore during 2010-11 with China accounting for almost 90 per cent of it. Industry experts forsee a sharp decline in iron ore exports this fiscal at 70-75 million tones. However the prices of iron ore are expected to firm up higher due to supply side constraints.
About Mr. Soumit Ranjan Jena:
Mr. Soumit Ranjan Jena hails from a family of Businessmen who has been engaged in business since the time of his grandfather and continued during the lifetime of his father Mr. Sandip Jena, born on 15.06.1975 aged 34 years graduated in Computer from IIT, New Delhi. Beginning his carrier by joining as a salesman for selling mobile telephones, Computers and other electronic products. Within a short period he established a Pvt. Ltd. Co. in the name of SRJ Software Pvt. Ltd. As Managing Director with other family members as Directors, in marketing Computers, Printers etc. established himself as one of the largest suppliers of Hardware & Software to Central Government, State Governments and many institutions.