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14 JULY 2026 AL CIRCLE

MRAI urges government to remove import duty on aluminium scrap

EDITED BY : STAFF EDITOR 2MINS READ

recycle

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The Material Recycling Association of India (MRAI) has urged the Indian government to abolish the 2.5 per cent Basic Customs Duty (BCD) on aluminium scrap, arguing that the measure would support the country's recycling industry and strengthen the circular economy.

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In a letter addressed to the Prime Minister's Office (PMO), the association said removing the duty would reduce raw material costs for recyclers and downstream manufacturers while improving their competitiveness in global markets.

MRAI noted that India remains heavily dependent on imported aluminium scrap, with 80-85 per cent of the country's requirement being met through imports. It said uninterrupted access to imported scrap is essential to sustain domestic manufacturing and support the continued growth of the recycling industry.

According to the association, India's secondary aluminium production has increased from 0.85 million tonnes in FY16 to nearly 2.2 million tonnes in FY26, accounting for around 35 per cent of the country's total aluminium consumption.

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The sector currently supports around 700,000 direct and indirect jobs, with women making up nearly 46 per cent of the skilled workforce involved in sorting, segregation and processing activities.

MRAI President Sanjay Mehta said removing the 2.5 per cent import duty would strengthen thousands of MSMEs, create employment, improve resource security, enhance the competitiveness of downstream manufacturing and promote the circular economy. He added that aluminium scrap should be recognised as a strategic industrial raw material rather than being treated as waste.

The association also pointed out that aluminium scrap remains the only major base metal scrap in India that is still subject to import duty, while copper, zinc and lead scrap have already been exempted.

MRAI further noted that countries including Thailand, Malaysia, Indonesia, Japan and South Korea allow duty-free imports of aluminium scrap, giving their recycling industries a cost advantage.

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EDITED BY : STAFF EDITOR 2MINS READ

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