Indian aluminium producers applaud the fact that the Indian commerce ministry is in favour of raising the import duty on aluminium to support domestic manufacturers. This could come as big support for domestic manufacturers of aluminium products as the aluminium demand India is currently very strong and a restriction on import will boost domestic aluminium consumption.
Discussing the impact of import duty hike, TK Chand, CMD of National Aluminium Company (NALCO) said that primary aluminium producers are in favour of hiking the import duty. He said that the Aluminium Association needs import duty on downstream products that are being diverted from China to India after the U.S. has implemented 10 per cent import tariffs on aluminium.
This increased flood of semi-finished aluminium export to India was further driven by the new countervailing and anti-dumping duties on aluminium foils and extrusions from China imposed by the U.S.
Mr Chand added that aluminium demand in India is currently strong enough at 8-10 per cent growth.
Replying to a question about the government's plans to increase the import duty on aluminium, Union commerce and industry minister Suresh Prabhu said, "That is a proposal to protect our domestic industry. The proposal is under examination and we support the proposal."
The minister said that there has been a complaint by the Indian aluminium industry about dumping of semi-finished and fake semis in India by China and other south Asian countries. Currently, the basic customs duty on aluminium scrap and primary aluminium is 2.5 per cent and 7.5 per cent, respectively. Domestic aluminium players have been negotiating with the government for imposing a minimum import price and some kind of quota on the imports of these products.
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