<p>Aluminium Association of India said China’s renewed measures to restrict scrap imports is leading to greater inflow of scrap into India, threatening the primary aluminium industry, and has urged the finance minister to raise basic customs duty on aluminium scrap to 10% from 2.5% now. AAI said “Currently custom duty on primary aluminium is 7.5% and aluminium scrap is only 2.5%. This is the reason why despite having significant presence of primary aluminium capacity and potential to generate sufficient domestic scrap, India’s consumption of scrap is 100% import-dependent. The way forward is to increase custom duty on aluminium scrap from 2.5% to 10%.”</p><p>Aluminium Association of India said the duty increase will encourage recycling of domestic scrap and restrict its growing imports. The share of scrap in total imports of aluminium increased from 52% in FY16 to 66% in FY21, resulting in around INR 15,000 crore worth forex outgo. India imported a little more than 2 million tonne aluminium last fiscal.</p>
<p>Aluminium Association of India said China’s renewed measures to restrict scrap imports is leading to greater inflow of scrap into India, threatening the primary aluminium industry, and has urged the finance minister to raise basic customs duty on aluminium scrap to 10% from 2.5% now. AAI said “Currently custom duty on primary aluminium is 7.5% and aluminium scrap is only 2.5%. This is the reason why despite having significant presence of primary aluminium capacity and potential to generate sufficient domestic scrap, India’s consumption of scrap is 100% import-dependent. The way forward is to increase custom duty on aluminium scrap from 2.5% to 10%.”</p><p>Aluminium Association of India said the duty increase will encourage recycling of domestic scrap and restrict its growing imports. The share of scrap in total imports of aluminium increased from 52% in FY16 to 66% in FY21, resulting in around INR 15,000 crore worth forex outgo. India imported a little more than 2 million tonne aluminium last fiscal.</p>
