Concerned that iron ore prices continue to rise and augment inflationary pressures on the economy despite the imposition of 15 per cent ad-valorem duty on its exports, the Committee of Secretaries (CoS) is likely to discuss tomorrow wide-ranging options on further disincentivising ore exports either by capping its overseas sale or enhancing the duty level to a considerable level to render exports unviable. Though ore prices are believed to have softened in the recent days yet any drastic downturn in its prices is unlikely owing to strong demand from neighbouring China whose steel production has reached more than 500 million tones annually triggering angry outbursts from the domestic steel utilities. In a bid to control flared tempers, the Steel Ministry has suggested that the miners should resort to dual pricing by offering the mineral at reasonable price to Indian steel companies and selling it at their own prices in the overseas. In the meeting, to be chaired by Cabinet secretary K M Chandrasekhar, steel ministry officials are likely to pitch for increasing the export duty to disincentivise it for increasing its availability in the local markets while the mines ministry is expected to make out a strong case for lifting export duty on ad-valorem basis and instead imposing a substantial duty only on export of high-grade iron ore as utilisation of low-grade ore is insignificant in the country owing to the lack of technology for its use. The CoS is likely to take a decision tomorrow as the pledge by steelmakers to hold on to their reduced price line is slated to expire this month. Though it is unlikely that they would increase prices even after expiry of their promised time line, yet the government is unwilling to take any chances. THE WAYS TO DISINCENTIVISE