The aluminium scrap recycling industry, which mainly comprises of micro, small and medium enterprises (MSMEs), has opposed the proposed increase in import duty on aluminium scrap from 2.5 per cent to 7.5 per cent.
The All India Non-Ferrous Metal Association (AINFMA) has said the move would result into shutting down of 3,500 MSME units and in turn would lead to job lost 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 called for abolition of customs duty on aluminium scrap which was imposed in 2013.
The association has even alleged the large players who produce aluminium for pressing the government for duty hike on aluminium scrap by claiming that high import of scrap was affecting their business.
“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. According to official figures, alumina import stood at 21.14 lakh tonne in 2017-18, while aluminium scrap import was 11.19 lakh tonne. In the first five months of this year, alumina import was 11.19 lakh tonne, and scrap was 5.41 lakh tonne.