India's top iron ore-producing state is increasing quality-control checks after some miners were found to be misrepresenting grades in order to pay lower royalties, according to a document seen by Bloomberg, a crackdown that could hit domestic and export sales.

The intensified scrutiny targets low-grade ore shipments where producers allegedly declared inferior material as higher quality to reduce royalty payments. Odisha, which accounts for over half of India's iron ore output, has mandated stricter sampling and testing protocols at mines and ports.

Industry officials warn the measures could delay shipments by 2-3 weeks as cargoes undergo additional verification. Major miners including NMDC and JSW Steel face potential disruption to both domestic steel production and overseas commitments, particularly to China.

The crackdown reflects New Delhi's broader push to maximize mineral revenue amid rising fiscal pressures. While the government insists the rules ensure fair royalty collection, trade groups argue the abrupt implementation creates logistical bottlenecks that may reduce India's competitiveness in global markets.