Indian Government reportedly considering proposal to increase import duties on aluminium

Following the request by the aluminium industry to increase import duties on both primary aluminium and aluminium scrap, the Indian government is now reportedly thinking to take it into consideration, sources said.

The aluminium industry players have demanded a hike in import duties because of the incessant growth in inward shipments of primary and secondary aluminium to India, sources said further.

Vedanta Group Chairman Anil Agarwal has also urged the government to increase the import duties to 10 per cent, noting that India is becoming a dumping ground amid ongoing tariff war between the United States and China.

Currently, the basic customs duty on aluminium scrap and primary aluminium is 2.5 per cent and 7.5 per cent respectively.

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. 

Initially, The Aluminium Association of India (AAI) had also urged the government to increase the duty on aluminium scrap import in the wake of the US’ 10 per cent duty on certain imported aluminium products. China had also increased the duties, because of which India was receiving a high amount of aluminium scrap. So to say, during the first quarter of the current fiscal, imports of aluminium scrap increased from 16,000 tonnes to 36,000 tonnes.

The association pointed out industries that require aluminium are primarily automobile, construction, and consumer goods. All these industries are growing in India and the country is producing sufficient amount of required metal domestically, AAI added.