The Deccan Herald reported that the government said that it is not considering reducing export duty on iron ore, rejecting the demand of domestic producers of the mineral.

Mr S R Rao, Secretary of Commerce said that "The Finance Minister has clearly said that there will no duty reduction on exports of iron ore."

Domestic iron ore producers have demanded a cut in exports duty from the current level of 30%. The Mines Ministry was in favour of a reduction in the duty, while the Steel Ministry was opposed to the idea.

India was once the third largest exporter of iron ore, the raw material for steel making but outbound shipments had slumped more than 80% in 3 years to hit 18 million tonne in the last financial year. Exports of iron ore fell from a high of 117.4 million tonne in 2009 to 2010 to 18 million tonne in 2012 to 2013.

Exports this year could remain well below the record high of more than 117 million tonne seen in 2009 to 2010 with a ban on exports from major producing states Karnataka and Goa being in force.

The Supreme Court is hearing an appeal seeking permission to resume mining in Goa, India's top iron ore exporter that shipped more than 43 million tonne in 2011 to 12 before mining and exports were banned in September last year.

On concerns of exporters on reduction in duty drawback rates, Mr Rao said that Commerce and Industry Minister Anand Sharma had discussed the issue with the Finance Ministry.

He added that "Yes, we have received lot of representations on the duty drawback. This has been registered by my minister. I do believe that he had already have a personal talks with the Finance Minister on this."

The Engineering Export Promotion Council had termed the government's decision to reduce duty drawback rates for the engineering sector as a shocking development and has said that the move would negate the positive impact of rupee depreciation.