FIMI pushes for 15% aluminium duty, flags import surge, poor-quality scrap

FIMI has urged the Finance Ministry to raise the basic customs duty on aluminium products to 15 per cent, citing rising imports, poor-quality scrap inflows and the pressure

The Federation of Indian Mineral Industries (FIMI) has asked the Ministry of Finance to raise the basic customs duty on primary aluminium and downstream products to 15 per cent, citing a sharp rise in imports and the growing entry of low-quality scrap into India.

 

Another industry body, Aluminium Association of India (AAI), had recently submitted a similar proposal to the Finance Ministry and the Ministry of Mines. In the letter sent to these ministries, AAI had called for imposing 15 per cent duty on all aluminium products and strict Quality Control Orders (QCO) on aluminium scrap import.

 

Why is FIMI seeking a higher duty on aluminium?

 

FIMI said aluminium imports from China, Russia, ASEAN nations and the Middle East have increased to the point where 55 per cent of India’s aluminium demand in FY26 is expected to be met through imports, despite sufficient domestic capacity.

 

It also flagged that India has become the world’s largest importer of aluminium scrap because there are no quality or BIS standards governing scrap and recycling, allowing low-grade material from the US, EU, UAE and UK to enter the market.

 

What does the domestic industry’s investment pipeline look like?

 

The industry body noted that producers are in the middle of more than Rs 1.5 lakh crore of ongoing investments, with Rs 1.6 lakh crore more planned to take primary aluminium capacity to 7.2 MTPA by FY2030 and 9 MTPA by FY2033.

 

What other measures has FIMI requested from the government?

 

FIMI also sought lower customs duties on critical raw materials, saying high taxes, duties and logistics costs leave India with one of the highest aluminium production costs globally, even though the country has large bauxite and coal reserves. The federation has urged the government to consider these measures in the Union Budget 2026–27.