Aluminium Producers Urge Government to Hike Import Duty on Scrap

Aluminium producers are urging the government to increase the import duty on aluminium scrap from 2.5% to 7.5% in the forthcoming budget. They also advocate for maintaining the primary aluminium import duty at its current rate of 7.5% or increasing it to 10%, aiming to protect the domestic industry and workforce.

Aluminium producers have made a formal plea to the government to raise the import duty on aluminium scrap to 7.5 per cent from the current 2.5 per cent in the upcoming budget.

In addition, they have requested maintaining the duty on primary aluminium imports at the ongoing rate of 7.5 per cent or a slight increase to 10 per cent to prevent cheap foreign materials from flooding the market and safeguard the domestic industry.

According to the Aluminium Association of India (AAI), this measure is crucial for protecting the domestic industry, which provides livelihoods to over 10 lakh people. The AAI emphasized that despite substantial domestic production, primary aluminium imports have surged by 30 per cent year-on-year, primarily due to imports from China and free trade agreements with ASEAN and Middle Eastern countries.