The Aluminium Association of India (AAI) has urged the government to increase the import duties on primary and downstream aluminium, as well as on aluminium scrap, in a bid to curb the influx of low-quality materials into the country. This move is part of the industry’s strategy to protect the domestic market and encourage local production.

In its pre-Budget recommendations, the AAI proposed raising the import duty on primary aluminium from 7.5% to 10% and on downstream aluminium from 7.5% to 12.5%. The association also called for a rise in the customs duty on aluminium scrap from 2.5% to 7.5-10%.

Addressing Market Disruption

The aluminium industry has been grappling with a surge in imports, particularly low-grade scrap, from countries with excess production capacity like China. These imports have led to an oversupply in the domestic market, pushing down prices and discouraging investment in local aluminium production. The industry has also raised concerns about the environmental impact of importing low-quality scrap, which could undermine efforts to improve recycling standards in India.

The AAI’s recommendation comes at a crucial time, ahead of the Union Budget, as the sector seeks government intervention to create a more favorable business environment and ensure the growth of India’s aluminium production capabilities.