Goa and Odisha on Edge: What Happens If the Iron Ore Duty Returns?

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(Commonwealth_India) The government’s decision to delay a hike in export duties on low-grade iron ore has brought a wave of cautious relief to mining towns in Goa and Odisha. On paper, the proposal was about raising duties from zero to as much as 30%. But for the people whose lives revolved around the mines, it was about something much deeper—the uncertainty of whether they’d still work tomorrow.

In Goa’s dusty mining belts, the ripples of news travelled fast. Truck drivers, who usually start their day before sunrise, lining up outside the mines for their loads, spoke of the fear that had been hanging over them for weeks. “If exports stop, our trucks don’t move. If the trucks don’t move, there’s no money for fuel, no money for food at home,” one driver said, leaning against his rust-coloured vehicle coated with iron dust.

Nearby, a tea stall owner poured steaming cups for miners finishing their shifts. She explained how her small shop depends on its daily wages. “When the mines are busy, I sell fifty cups a day. When they shut down, I barely sell five. We don’t talk about policies and duties here—we just feel them in our stomachs.”

The Goa Chamber of Commerce and Industry has been trying to capture this reality in its appeals to the government. Its president, Pratima Dhond, wrote to Union Mines Minister G. Kishan Reddy, warning that slapping duties on ore with less than 58% iron content would strangle not just an industry but entire communities. Thousands of drivers, contractors, mechanics, shopkeepers, and families, whose livelihoods fluctuate with each truckload of ore, supported her words.

In Odisha, the situation remains largely unchanged. Heavy rains this monsoon turned the open pits into waterlogged craters, slowing down work and pushing up prices. Consultancy firm BigMint reported a 7% rise in fine prices in August compared to July. But for the workers, higher prices brought no joy. Mines are shut often during the rains, leaving men and women at home waiting for the call to return, wages stalled, and debts piling up. One miner in Keonjhar explained, “We don’t care if prices go up or down—we just want steady work. That’s all.”

The memories of 2022 remain fresh in both states. Back then, when the government suddenly imposed a 50% export duty on low-grade ore and 45% on pellets, contracts abroad vanished overnight. Truck lines disappeared, tea stalls closed, and families scrambled to survive. The policy was eventually reversed in November 2024, but the scars remain. “It’s like when someone suddenly cuts off your oxygen,” said a retired mine supervisor from Goa. “You don’t forget that feeling.”

For now, miners and workers can breathe easier. Trucks still roll toward the ports, shops still stay open late, and children in mining families can go to school without parents worrying about how to pay the fees. But the relief is fragile. Everyone knows the debate isn’t over. Another policy change could come with little warning, reshaping lives all over again.

In the end, the story of iron ore duties isn’t just about trade balances or government revenues. It’s about the red dust that clings to a driver’s clothes, the tea that warms a miner’s hands at the end of a shift, and the wages that put rice on the table in a worker’s home. For thousands of families in Goa and Odisha, it’s about whether tomorrow will bring work—or silence.

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