Budget 2026: Mining Sector Urges Government to Remove Export Duty on Low-Grade Bauxite

Ahead of the Union Budget 2026, India’s mining industry has strongly appealed to the Centre to withdraw the export duty on low-grade bauxite, arguing that the levy is hurting competitiveness and discouraging exploration activity.

Industry bodies representing miners and mineral exporters have submitted recommendations to the Finance Ministry, stating that the current export duty makes low-grade bauxite—used largely in cement and refractory industries—unviable in the global market. With limited domestic demand for this grade, miners claim the duty has resulted in stockpiles and operational inefficiencies.

According to sector experts, India has significant reserves of low-grade bauxite that remain underutilized. Removing the export duty, they argue, would unlock opportunities for small and medium miners, improve foreign exchange earnings, and support employment in mineral-rich states such as Odisha, Jharkhand, Maharashtra, and Gujarat.

Some industry representatives also highlighted that leading bauxite-exporting nations offer duty incentives to boost outbound shipments, putting Indian miners at a competitive disadvantage. They noted that the removal of duty would not impact the availability of higher-grade bauxite required by the domestic aluminium industry.

Analysts believe the government may evaluate the demand as part of broader efforts to revitalize the mining sector and attract investments. The industry hopes that Budget 2026 will bring policy clarity and provide much-needed relief to boost exports and improve operational viability.