Downstream aluminium industry appeals to government over MIP on aluminium

<p>The Aluminium Secondary Manufacturers Association (ASMA) has requested the Finance Minister and Commerce Minister to &ldquo;stop Injustice against 3500 Aluminium MSME&rdquo; over government&rsquo;s decision for imposing a minimum import price (MIP) on aluminium through an open letter in the newspapers.</p> <p><img style="display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/aluminumcoil.jpg" alt="news" width="517" height="226" /></p> <p>ASMA said, &ldquo;It has been reported in the media that Ministry of Mines has eventually recommended to fix Minimum Import Price (MIP) for import of aluminium metal in the country.&rdquo;</p> <p>The association said downstream players all over the world including India buy aluminium at a price based on London Metal Exchange (LME) price to which quarterly premium is added to arrive at the CIF value for import of aluminium metal in any country.</p> <p>This shows that MIP is already added and there is no need of fixing extra MIP for import of aluminium to India. ASMA alleged that this will benefit only the major primary aluminium producers who want to earn profit by getting protection in the form of higher import duty or safeguard duty and/ or fixing of MIP. &nbsp;ASMA sees no justification for extra duties.</p> <p>The association said that the Indian primary producers are producing in their full capacity and are earning huge profits despite the low LME and that been verified and confirmed by DG (Safeguards).</p> <p>{googleAdsense}</p> <p>The downstream MSMEs commented: &ldquo;In case the Government of India fixe the MIP, it will only help the importers/ manufacturers to generate black money overseas. Since MIP will be higher than the actual import price, hence instead of paying the differential amount to the government of India, the manufacturers will keep the different amount in their foreign account by getting commission from oversea suppliers.&rdquo;&nbsp;&nbsp;</p> <p>The aluminium downstream products manufacturers that produce aluminium extrusions, rolled product, utensils etc. have opposed the government decision of imposing MIP as it would make imported aluminium expensive for them affecting their margins significantly, while primary aluminium producers have sought protection from the onslaughts of cheap imports through imposing of extra duties.&nbsp;</p>