
The aluminium industry has sought the government to lower the basic customs duty on critical raw materials like aluminium fluoride, making a statement that high import duties are a huge drawback as they make Indian finished goods overpriced and uncompetitive in the international markets.

The Aluminium Association of India (AAI) said: "To improve the cost structure of the Indian Aluminium Industry and enhance competitiveness, it is requested to reduce the basic customs duty on the critical raw materials.”
The aluminium industry has suggested to the Government of India for the forthcoming Union Budget 2020-21, that basic customs duty on raw materials like aluminium fluoride, caustic soda lye and green anode/pre-baked carbon anode needs to be slashed to 2,5% from the present 7.5%.
AAI has also recommended the Govt. to increase import duty on aluminium scrap at par with principal aluminium metal to 10% from the current 2.5% concerning favour towards recycling of domestic scrap and limit increasing scrap imports.
The primary aluminium industry is facing severe heat from the risen aluminium scrap import, which constitutes around 58% of the total aluminium imports in FY 2019-20, resulting in forex amount of INR 17,200 crore.
AAI has also requested the Govt. to eradicate high cess on coal (INR 400/MT) to support the power-intensive industries like aluminium and retain cutthroat in the domestic industry.
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