AAI demands higher import duty on aluminium scrap

Aluminium Association of India (AAI) has urged the government to increase the duty on imports of aluminium scrap as the domestic sector may become victim of escalating trade war between the US and China.

The statement comes in the wake of Washington imposing 25 per cent duties on USD 34 billion of imports from China.

The association said an estimated 30 per cent of China's aluminium scrap imports come from the US. And recently China has announced its intent of imposing 25 per cent import duty on the metal from America.

"The import duty in India on aluminium scrap is currently only at 2.5 per cent, thereby making it a viable alternative for US exports," the body said, adding that as a precautionary measure it wants the duty on both aluminium scrap and primary metal to be raised to 10 per cent.

In this regard, a delegation of the association met Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek recently and apprised him about the situation which could arise in future.

Aluminium is required by the industries like automobile, construction, consumer goods etc.

All these industries are growing in India and the country is producing sufficient amount of required metal domestically, AAI said.

"We have a capacity of 4 million tonnes per annum(MTPA) and our consumption is 3.6 MT which we are producing. So, what will be the situation in the market when import will start increasing. It will ruin the domestic aluminum industry," the association added.

Aluminium Association of India is the apex body representing the entire spectrum of Indian aluminium industry primary producers, downstream manufacturers, endusers, R&D organisations.