QCO On Copper Cathodes Sparks Fear Of Shortages; Associations To Challenge In Court

New Delhi, Apr 17 (KNN) India's leading metal trade associations have filed a legal petition against the central government's Quality Control Order (QCO) on copper cathodes, citing significant supply disruptions. 

The Bombay Metal Exchange and the Bombay Non-ferrous Metals Association submitted the petition to the Bombay High Court on March 18, arguing that the QCO, implemented on December 1, 2024, has led to "acute shortages" in copper supply, adversely affecting downstream industries. 

The QCO mandates that all copper cathode imports must be certified by the Bureau of Indian Standards (BIS). However, delays in BIS certification for major foreign suppliers, particularly from Japan, have resulted in a sharp decline in imports during December and January. 

India relies on imports for approximately 30 per cent of its refined copper needs, essential for manufacturing electrical wires, cables, and components used in various sectors, including electric vehicles and renewable energy. 

The petitioners contend that the QCO was enacted without adequate consultation and has jeopardised the operations of numerous small and medium-sized enterprises dependent on imported copper. 

The Bombay High Court acknowledged the petition on March 27 and scheduled the next hearing for April 17. 

The Ministries of Mines and Consumer Affairs, responsible for the QCO and BIS respectively, are expected to respond to the petition.

In response to industry concerns, the Ministry of Mines stated that as of December 2024, four domestic and four international suppliers have received BIS certification, with additional certifications anticipated by mid-December. The ministry assured that these measures would prevent significant supply constraints. 

The outcome of this legal challenge is poised to influence India's copper supply chain and the broader manufacturing sector.

(KNN Bureau)