The Material Recycling Association of India (MRAI) has called on the government to abolish import duties on aluminum scrap in the upcoming budget on 23 July.
MRAI highlighted in a letter to Finance Minister Nirmala Sitharaman that the 2.5% import duty on aluminum scrap poses significant challenges to the recycling industry. The association emphasized the necessity of making this raw material duty-free until the domestic market can provide sufficient quality supplies.
MRAI President Sanjay Mehta urged the government to ensure fair competition between primary and secondary aluminum producers. He suggested that if scrap imports are taxed, equivalent export duties should be imposed on primary products to balance the overall cost impact on the country.
India's aluminum recycling industry depends heavily on imports due to the inadequate availability of high-quality scrap domestically. The existing import duty structure hampers the global competitiveness of Indian producers, as many other nations do not impose such duties on metal scrap. This situation could impede India's progress towards its sustainability goals, noted MRAI Senior Vice-President Dhawal Shah and CMR Green Technologies Managing Director Mohan Agarwal.
In 2023, India imported 1.83 million tons of aluminum scrap, the majority of which was sourced from the USA. Other major supply points included Europe, the Middle East, and North Africa.
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