MRAI Urges PMO To Scrap 2.5% Import Duty On Aluminium Scrap

New Delhi, Jul 9 (KNN) The Material Recycling Association of India (MRAI) has urged the Prime Minister's Office (PMO) to abolish the 2.5 percent Basic Customs Duty (BCD) on imported aluminium scrap.

MRAI Seeks Removal of Aluminium Scrap Import Duty

The association said the duty is raising raw material costs despite India importing 80–85 percent of its aluminium scrap needs, reported Times Of India. 

In its representation to the PMO, it urged the duty's removal, saying it would boost MSME competitiveness, create jobs and support low-carbon manufacturing.

Industry Highlights Economic and Environmental Benefits

MRAI said secondary aluminium production has increased from 0.85 million tonnes in FY16 to nearly 2.2 million tonnes in FY26, meeting around 35 percent of domestic demand and supporting nearly seven lakh jobs. 

It noted that aluminium scrap remains the only major non-ferrous metal scrap subject to import duty, unlike copper, zinc and lead, while countries such as Thailand, Malaysia, Indonesia, Japan and South Korea allow duty-free imports. 

MRAI President Sanjay Mehta said removing the duty would strengthen raw material security, lower production costs and support India's ambition to become a global aluminium recycling hub. 

The association added that imported scrap is processed into value-added products used across the automobile, engineering, steel and packaging sectors. 

Industry Warns of Supply Risks

MRAI Senior Vice-President Dhawal Shah said rising export restrictions in the European Union, the United States, GCC countries and parts of Africa are making stable aluminium scrap imports crucial for India. 

The association also said a Joint Working Group under the Ministry of Mines recommended considering the removal of the 2.5 percent import duty in the national interest during its June 17 meeting. 

Recycling Industry Seeks Policy Support

MRAI said recycled aluminium uses up to 95 percent less energy and emits up to 90 percent less carbon dioxide than primary production. Citing NITI Aayog's roadmap, it said secondary aluminium could meet nearly 45 percent of India's aluminium demand by 2028. 

The association has sought a meeting with the PMO, saying scrapping the import duty would improve raw material availability, boost MSME competitiveness, attract recycling investments and support India's manufacturing and sustainability goals.

(KNN Bureau)