MRAI Seeks End to 2.5% Duty on Aluminium Scrap

Metal Recycling News  |  2026-07-15 07:00:45   |   By

According to MRAI, India's secondary aluminium production has expanded significantly over the past decade, rising from 0.85 million tonnes in FY2015-16 to nearly 2.2 million tonnes in FY2025-26.

Summary
  • MRAI has called for the removal of the 2.5% Basic Customs Duty (BCD) on aluminium scrap imports to strengthen India's recycling industry and lower manufacturing costs.
  • India imports 80–85% of its aluminium scrap requirement, making steady scrap supplies critical for the growth of secondary aluminium production and downstream industries.
  • Secondary aluminium production has grown sharply, increasing from 0.85 million tonnes in FY2015-16 to nearly 2.2 million tonnes in FY2025-26, with recycled aluminium accounting for about 35% of domestic consumption.

SEATTLE (Scrap Monster): The Material Recycling Association of India (MRAI) has urged the Central government to eliminate the 2.5% Basic Customs Duty (BCD) on aluminium scrap imports. The trade body argued that the move would strengthen the country's recycling sector, reduce production costs, and improve the competitiveness of Indian manufacturers.

In a representation submitted to the Prime Minister's Office, the association stated that India relies on imported aluminium scrap to meet nearly 80–85% of its domestic requirement. The guaranteed supplies of scrap are essential for the growth of the recycling industry and downstream manufacturing in the country, it noted.

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According to MRAI, India's secondary aluminium production has expanded significantly over the past decade, rising from 0.85 million tonnes in FY2015-16 to nearly 2.2 million tonnes in FY2025-26. Recycled aluminium now accounts for about 35% of the country's total aluminium consumption.

MRAI President Sanjay Mehta said removal of the import duty would be beneficial for thousands of micro, small and medium enterprises (MSMEs), Additionally, it could create additional employment opportunities. Aluminium scrap should be treated as an essential industrial raw material rather than as waste, Mehta added.

The association also noted that aluminium scrap is the only major non-ferrous metal scrap still subject to import duty in India.