Ahead of the Union Budget 2024, Indian aluminium producers have sought an increase in the import duty on aluminium scrap to 7.5 per cent from the present 2.5 per cent.
In addition, they have also asked to maintain the import duty on primary aluminium at the current rate of 7.5 per cent or a marginal rise to 10 per cent.
These urges are to curb the excessive inflow of substandard aluminium products and protect the domestic industry, which provides livelihoods to more than 10 lakh people.
This news came on Tuesday, July 16, after the Aluminium Association of India (AAI) asked the government to control aluminium scrap imports by increasing duties to 7.5 per cent, akin to those on primary aluminium.
AAI is also advocating for the maintenance of the duty on primary aluminium imports, including downstream products, at the current rate of 7.5 per cent or a slight increase to 10 per cent. This is crucial to implement more stringent action against the influx of cheap imports.
AAI rightly pointed out that despite adequate aluminium production in India, primary aluminium imports to the country are rising incessantly, registering 30 per cent rise year-on-year, driven by imports from China and free trade agreements with ASEAN and the Middle East countries. As a result, micro, small, and medium enterprises in downstream production are suffering.
AAI asserted, "Imports fulfilled 55 per cent of the country's aluminium demand in FY24, while the share of domestic producers plummeted from 60 per cent in FY11 to 45 per cent in FY24. Alarmingly, low-quality foreign scrap, which poses safety and environmental risks, has spiralled upwards from 472 kt (kilo tonnes) in FY11 to 1,768 kt in FY24, which is a whopping increase of 274 per cent."
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