Aluminium Industry Calls for Revamped Import Duties Amid Challenges

The Aluminium Association of India urges the government to increase import duties on primary, downstream aluminium, and aluminium scrap to combat the influx of low-quality imports that disrupt the local market. Recommendations include adjusting duties to bolster domestic production competitiveness and address high energy costs.

The Aluminium Association of India (AAI) has urged the government to raise import duties on primary aluminium to 10 percent and downstream aluminium to 12.5 percent from the current rate of 7.5 percent. The call for increased duties is part of a broader strategy to curtail the import of low-grade aluminium scrap, which currently benefits from lower tariffs.

The influx of aluminium from countries with surplus capacity, like China, has disrupted the domestic industry, leading to requests for higher import duties from organisations like the Federation of Indian Mineral Industries (FIMI). They argue that raising these tariffs could reinvigorate local production by correcting an inverted duty structure that burdens domestic producers.

The aluminium industry also highlights the crippling effect of high energy costs, exacerbated by the GST compensation cess on coal. By removing or offsetting this cess, the industry believes it can reduce operational costs and align more closely with global production standards, amplifying its investment appeal as demand continues to grow towards 2030.

(With inputs from agencies.)