Recycling Industry Urges Government To Scrap Import Duty On Aluminium

New Delhi, Jul 18 (KNN) The Material Recycling Association of India (MRAI) has called on the government to eliminate the 2.5 per cent import duty on aluminium scrap ahead of the upcoming budget presentation.

This appeal, directed to Finance Minister Nirmala Sitharaman, underscores the critical role of recycling in reducing carbon emissions and promoting environmental sustainability.

The MRAI highlighted the stark contrast in carbon emissions between recycling aluminium scrap and primary aluminium production. While recycling emits a mere 0.3 million tonnes of CO2 per tonne of production, primary production through smelters results in a staggering 14 tonnes of carbon emissions for the same output.

This disparity emphasises the potential environmental benefits of promoting aluminium recycling.

MRAI President Sanjay Mehta emphasised, "India's aluminium recycling industry plays a pivotal role in harmonising efforts to combat climate change and bolster environmental sustainability."

He further noted that recycling not only limits the use of raw materials but also protects natural resources like bauxite and reduces landfill waste.

The association argues that removing the import duty would address several key challenges faced by the Indian aluminium recycling industry. With India's per capita aluminium consumption at just 2.5 kg, compared to the global average of 11 kg, the industry heavily relies on imports for quality aluminium scrap to meet domestic shortfalls.

Looking ahead, the MRAI anticipates a substantial increase in aluminium demand, driven by India's projected GDP growth and ambitious infrastructure development plans. This expected surge further underscores the importance of a robust recycling industry.

Dhawal Shah, Senior Vice President of MRAI, cautioned against the potential negative impact of import duties on sustainability goals.

"Having import duties on Aluminium scrap could be retrograde and would decelerate our efforts in reaching sustainability goals," he stated.

The MRAI's appeal extends beyond aluminium, calling for zero duty on copper scrap and brass scrap (currently at 2.5 per cent), as well as zinc and lead scrap (currently at 5 per cent).

As Finance Minister Nirmala Sitharaman prepares to present the full Union Budget for the financial year 2024-25 in Parliament on July 23, the recycling industry eagerly awaits a decision that could reshape the future of sustainable metal production in India.

(KNN Bureau)