from daijiworld's special correspondent

Panaji, Mar 3: Goa's mining industry has started feeling the heat of Rs 300 per metric tonne export duty imposed on them, with five export-bound vessels cancelled on Thursday.
 
"We are already facing the effect of the Union Budget. Five China-bound vessels stand cancelled for the first day on Thursday. If the Finance Minister does not roll back the duty, the industry will have to close down," S Shridhar, executive director of Goa Mineral Ore Exporters' Association,  a body of Goa's mine owners, said.
 
Mining is the second largest foreign exchange earner for Goa, after Tourism, touching almost 1.5 lac households, directly or through ancillary industries related to mining.
 
"Goa is facing stiff competition from Australia and Brazil who are entering into the market with low-grade iron ore alike Goa. Within next two years they will establish themselves in the market, if we are kept busy with these duty hassles," Shridhar said.
 
Goa's miners plan to meet Finance Minister, next week, petitioning him to rollback the export duty.
"Of the total ore produced in Goa, 20 per cent is lumpy, while eight per cent is of low grade, which is generally used for blending. No Indian steel industry will be interested in buying it at the cost which we are getting in international markets," he said.
 
Last calendar year, Goa exported 36 million metric tonne ore. China serves as a major market for Goan exporters along with traditional markets of Japan, Pakistan, Europe and Middle East.
 
"Budget proposal is provoked by the steel industry to reduce the price of ore," Shridhar alleged.

"If the Finance Minister does not pay heed to our demand, we will be forced to close down the industry," Shridhar said.

The miners said, the export duty was abolished 15 years back.

"Earlier, it was charged at Rs 5 per metric tonne and later at the rate of five per cent of the value of export," he said.