Aluminium Association of India calls for stricter controls on aluminium scrap imports

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India's aluminium industry is debating import duties and quality regulations for aluminium scrap. The Aluminium Association of India (AAI), which represents primary aluminium producers, has called for stricter controls on aluminium scrap imports and stronger quality regulations. 

The association has raised concerns that increasing imports of what it describes as substandard scrap could threaten investments worth more than INR 3 trillion (USD 31.5 billion). India currently levies a 7.5 per cent Basic Customs Duty on primary aluminium and 2.5 per cent on aluminium scrap.

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The issue was recently discussed at a joint meeting with the Ministry of Mines, attended by representatives from both segments of the industry. According to Dhawal Shah, Senior Vice President of the Material Recycling Association of India (MRAI), He said, "It was agreed by all that import duty on aluminium scrap should be removed.” He added that India mainly imports processed aluminium scrap, which further complicates the debate over import duties and quality regulations. 

The AAI said India's primary aluminium production capacity has increased from 2 million tonnes per annum (MTPA) to 4.2 MTPA over the past decade, making the country one of the world's largest aluminium producers after China.

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The Aluminium Secondary Manufacturers Association (ASMA), which represents around 3,500 micro, small and medium enterprises, has also called for the removal of import duties. The association said lower duties would reduce raw material costs, noting that primary aluminium accounts for up to 80 per cent of production costs for downstream manufacturers.

Shah also pointed out that regions including Europe, the Middle East and the United States are increasingly treating aluminium scrap as a strategic resource. These nations are introducing measures to retain more scrap within their domestic markets to support low-carbon manufacturing. He said the developments could further influence India's debate over aluminium scrap import policy.