Government to decide on duty protection for aluminium sector

Aluminium sector is facing dumping of products from countries like China

Government may soon come out with a decision on duty protection measure for the domestic aluminium sector which is facing dumping of products from countries like China.

"We are working to provide safeguard duty protection for primary aluminium producers being hurt from dumping. We will decide (on the matter) soon, may be in two-three weeks," Union Mines Secretary Lavender Kumar told PTI.

He further indicated it could be either anti-dumping duty or any form of safeguard duty.

In a notification, the Directorate General of Anti-Dumping and Allied Duties (DGAD) had said it has found prima facie evidence of dumping of aluminium from China.

"The authority hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry... To determine the existence, degree and effect of any alleged dumping and to recommend the amount of anti-dumping duty, which if levied would be adequate to remove the injury to the domestic industry," the notification said.

The period of investigation is from April 2014 to March 2015.

India's annual aluminium consumption is three million tonnes and production capacity is four million tonne. Nearly half the consumption is met by imports, mainly from China.

Import of alumunium had increased by 159% in 2015 compared to 2011 levels, industry sources said.