India’s MRAI urges zero import duty on Al scrap

The Material Recycling Association of India (MRAI) has urged the government to remove import duties on aluminium scrap in its budget to be presented on 23 July.

"Among the key challenges faced by the Indian aluminium recycling industry is paying [a] 2.5pc import duty on aluminium scrap," MRAI said in a letter to India's finance minister Nirmala Sitharaman. "It is a key raw material for aluminium recycling and the government should make it zero until the quality material is available in sufficient quantity in the domestic market."

The government has a duty to create a level playing field between primary and secondary aluminium producers, said MRAI president Sanjay Mehta. "If customs duties are applicable on import of scrap, then commensurate export duties on the basis of total cost to country on primary products should also be levied."

India does not have sufficient supplies of good quality metal scrap to support its recycling industry and relies heavily on imports. The current import duty system, coupled with the lack of aluminium scrap in India, reduce Indian producers' competitiveness in global markets because most other countries have no import duty on metal scrap. This could decelerate the country's effort to achieve its sustainability goals, added MRAI senior vice-president Dhawal Shah and the managing director of CMR Green Technologies Mohan Agarwal.

India imported 1.83mn t of aluminium scrap in 2023 with more than a quarter coming from the US. Europe, the Middle East and north Africa are its other key suppliers.

By Deepika Singh