Secondary metal producers seek duty cut on imported scrap in Budget

Secondary metal industry says metal recycling should be treated as a priority sector.

Secondary metal producers have asked the government to cut customs duty on imported metallic scrap and curb cheap imports, arguing they provide jobs but need a level-playing field.

The industry faces an inverse duty structure: it pays 2.5 per cent customs duty on imported metallic scrap of aluminium and copper; and 5 per cent on zinc and lead. However, finished products of these metals imported from countries that have free trade agreements with India enjoy “nil” duty. Imported raw materials thus are 2.5-5 per cent costlier than finished products, and processing them escalates costs to make Indian products cost uncompetitive