Key Development
The Government of India has announced a full customs duty exemption on manganese ores and concentrates containing 20% or more manganese content, a move that could influence the domestic manganese industry and bring companies like MOIL Limited into focus.
The exemption was notified by the Ministry of Finance under the Customs Act, 1962, through Notification No. 21/2026-Customs dated June 9, 2026.
What Has Changed?
The government has reduced the customs duty rate on:
- Manganese ores
- Manganese concentrates
- Ferruginous manganese ores containing 20% or more manganese
New Customs Duty
| Item | Customs Duty |
|---|---|
| Manganese Ores & Concentrates (20%+ Mn content) | 0% |
The exemption applies to goods classified under tariff item 26020010.
Why Is This Important?
Manganese is a critical raw material used in:
- Steel manufacturing
- Ferroalloys production
- Battery technologies
- Infrastructure and industrial applications
Lower import duties can:
✔ Reduce raw material costs
✔ Improve supply availability
✔ Support domestic steel and alloy manufacturers
✔ Increase competitiveness of downstream industries
Impact on MOIL
About MOIL
MOIL Limited is India’s largest producer of manganese ore and plays a significant role in supplying the steel and ferroalloy sectors.
Potential Positives
- Greater industry activity may increase manganese demand.
- Improved supply chain efficiency across the sector.
- Enhanced focus on manganese-related businesses and strategic minerals.
Potential Challenges
Since imported manganese ore becomes cheaper, domestic producers could face:
- Increased competition from overseas suppliers.
- Pressure on pricing if imports rise substantially.
- Need to maintain cost competitiveness.
Therefore, while the news increases industry attention on MOIL, the actual financial impact will depend on future import volumes and domestic pricing trends.
Market Implications
The duty exemption is aimed at supporting industrial growth and reducing input costs for users of manganese ore.
Industries likely to benefit include:
- Steel manufacturers
- Ferroalloy producers
- Metal processing companies
- Battery and energy storage supply chains
The move also aligns with India’s broader objective of strengthening raw material availability for manufacturing and infrastructure development.
MOIL Share Price Performance
As of June 9, 2026:
| Particulars | Value |
|---|---|
| Closing Price | ₹291.80 |
| Daily Change | +0.33% |
The stock remained relatively stable after the announcement, though investors are likely to monitor how the policy affects industry dynamics in the coming months.
Conclusion
The government’s decision to exempt manganese ores with 20% or higher manganese content from customs duty is a notable policy change for the metals and mining sector. While it can lower input costs and improve raw material availability for downstream industries, the impact on MOIL Limited will depend on how import competition, domestic demand, and manganese pricing evolve. Investors may continue to watch MOIL closely as the industry adjusts to the new duty structure.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.
