New Delhi: With the onset of lean season for iron ore demand, the Railways has cut freight rate on the export of the commodity by Rs 475 per tn with effect from Tuesday.
The freight rate was last revised in March 2011.

In a circular, the Railway Board said the new distance-based charge for transporting iron ore within a 200-km radius would be 125 percent of the base freight rate plus 1,125 rupees. The previous rate was 125 percent of the base freight rate plus 1,600 rupees.
The cut is similar for other six distance slabs.

China is the largest importer of India's iron ore.

Export of iron ore has been a sore issue with warring interests. While steel makers are against exports as the commodity is an essential raw material for the alloy, iron-ore miners want revenues from higher-margin exports.
India's iron exports have suffered over the last one year as Supreme Court has banned exports from Karnataka, one of India's largest iron ore producers.

Latest available industry data shows iron ore exports fell 28 percent to 40 mln tn during Apr-Nov.