Commerce and Industry Minister Suresh Prabhu said the commerce ministry is in favour of increasing import duties on primary aluminium and aluminium scrap with a view to support local producers, PTI reports.

“That is a proposal to protect our domestic industry. The proposal is under examination and we support the proposal,” Prabhu told PTI.

The aluminium industry has demanded a hike in import duties on primary aluminium and aluminium scrap from 7.5 per cent and 2.5 per cent to 10 per cent. It has demanded a hike in import duty because of the incessant growth in inward shipments of these materials.

Besides, the industry has also urged the government to consider imposing minimum import price and some kind of quota on the imports for the user industry.

Total production of aluminium in India is about 4 million tonnes and consumption is about 3.6 million tonnes.

The demand comes in the wake of the US’s 10 per cent duty on certain aluminium products.

Imports of aluminium scrap rose to 36,000 tonnes from 16,000 tonnes in the first quarter of the current fiscal, according to recent estimates.