Aluminium scrap recycling MSMEs opposing import duty hike on aluminium scrap

Aluminium scrap recycling MSMEs opposing import duty hike on aluminium scrap

Aluminium scrap recycling MSMEs opposing import duty hike on aluminium scrap

The aluminium scrap recycling industry, comprises mainly of micro, small, and medium enterprises (MSMEs), is reportedly opposing the proposed import duty hike on aluminium scrap from 2.5 per cent to 7.5 per cent.

The All India Non Ferrous Metal Association (AINFMA) is of an opinion that the increase in aluminium scrap import duty would result into the closure of 3,500 MSMEs units, which in turn would lead to job loss of approximately 1.5 lakh workers employed in the sector.

“India is already importing large quantity of ingots from countries like Malaysia, Thailand, Vietnam, etc. which have a free trade agreement with us, at zero customs duty, while recyclers are paying 2.5% customs duty.

If the duty is hiked, imports of ingots will rise further, which will adversely impact scrap recyclers,” Jayant Jain, Secretary, AINFMA said.

The Association rather demands for the abolition of customs duty on aluminium scrap which was imposed in 2013.

In addition, the association has even alleged the large aluminium players for pressing the government for duty hike on aluminium scrap claiming that this move is affecting their businesses.

“This is a misrepresentation by aluminium producers. There is no competition between them and us.

If duty on aluminium scrap goes up, their realisation will also increase,” Jain said.

As per the official figures, alumina import in 2017-18 had stood at 21.14 lakh tonne while the aluminium scrap import was 11.19 lakh tonne in contrast.

In the first five years of 2018, alumina import volume by India was even higher than the aluminium scrap.

The former was at 11.19 lakh tonne while the latter was 5.41 lakh tonne.

From Alcircle