Karnataka iron ore mines stuck unsold inventory
Iron ore miners in Karnataka are stuck with 6.5 million tonnes of unsold inventory as against 1.5 mt a year ago. And one of the reasons is that the steel companies are buying ore from other states, while Karnataka mines are not allowed to export outside the state. Unsold ore amounts to more than 20 per cent of the total production of iron ore in the state in FY19. The miners are not able to sell the inventory in the state or domestic market since buyers prefer imported iron ore as they feel it is better on quality. This peculiar phenomenon not only has affected the miners, but also led to around Rs 400 crore loss to the state.
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