A ship anchored at Paradip port

Paradip, Sept. 7: The steep fall in the value of the rupee has got a lot of people worried, but iron ore traders in the mineral-rich hinterland of Odisha are certainly not among them.

If the rise in exports from Paradip port is any indication, iron ore exporters are doing excellent business in the wake of the devaluation of the rupee.

The international steel market is showing signs of improvement. This has led to an increase in iron ore trading that had virtually come to standstill following restrictions imposed by the state government on mining operations.

File picture of an iron ore mine

Things are changing for the better and the benefits are now reaching everybody, from mining labourers, transporters to exporters, said a mineral trader.

Director of mines, Deepak Mohanty, said: “We are examining whether the rupee devaluation has led to an increase in exports. However, the state government has withdrawn restrictions on specific mining houses that were found to be in possession of valid documents.”

Iron ore traffic has registered a growth of 98.46 per cent at Paradip port in the current financial year till August at a time when the crash of the rupee has weakened the national economy.

The situation has improved with the state directorate of mines according clearance to some of iron ore mines. The trade on at present, is based on export orders received earlier.

Some time ago, there was acute scarcity of iron ore cargo plots in the port within its operational areas. The permits of 59 such plots had been cancelled in August last year. Things have brightened now because the port has created ample space for iron ore handling. Fifteen new cargo plots measuring 4,500sqm have been set up exclusively for iron ore traffic, said traffic manager of Paradip Port Trust Kishore Kumar Sahu.

Demand for iron ore has gone up in the international market, but the port is not in a position to handle more than 1,000 truckloads of iron ore a day. This is because of the shortage of cargo plots for stockpiling, said Sahu.

“The rise in iron ore export has given the port the much-needed boost at a time when the economy is going through a rough phase. Exporters are getting more money because of the rupee’s devaluation. The growth in iron ore export will continue even after the rupee stabilises. The steel sector scenario is looking bright and this streak is expected to continue,” said Paradip port trustee Pravat Kumar Samantaray.

The Paradip port has handled 29.04 million tonnes of cargo till August 2013 in the current financial year as compared to 21.08 million tonne in the corresponding period last year. This is an increase of 37.79 per cent and 9.56 per cent more than the target fixed for this period. The port handled 5.91 million tonnes of cargo during August 2013, as compared to 4.88 million tonnes the previous year, a 21.07 per cent jump and 13.29 per cent higher that the target.

During the current financial year up to August 2013, thermal coal traffic has increased by 51.19 per cent while iron ore traffic grew by 98.46 per cent as compared to the corresponding period last year. Export of fertilizer raw materials grew by 4.13 per cent, cooking coal by 20.01 per cent and other cargo by 47.85 pre cent, said port officials.