Aluminium industry urges higher duties amid dumping concerns

Indian aluminium sector seeks policy changes to combat foreign dumping

{reg}The Aluminium Association of India has proposed increased import duties on aluminium scrap and primary aluminium, citing concerns over dumping practices primarily by China, the Middle East, and ASEAN nations. According to Moneycontrol, the industry body has urged for a rise in scrap import duties to align with those on primary aluminium, aiming to safeguard domestic production and employment for over 1 million workers.

In fiscal year 2024, imported aluminium scrap constituted 55 percent of India's total demand, a significant increase from previous years. Conversely, local manufacturers' share decreased to 45 percent, down from 60 percent in 2011. The influx of low-quality scrap surged, posing environmental and health risks, escalating from 472 kilo tonnes in FY11 to 1,768 kilo tonnes in FY24.

The aluminium industry faces dual challenges of high domestic taxes and the impact of the EU's Carbon Border Adjustment Mechanism, potentially jeopardizing a USD 2.2 billion export market. Despite increasing efforts towards low-carbon energy solutions, substantial investment hurdles remain.{reg}