MRAI Seeks End to 2.5% Duty on Aluminium Scrap
Metal Recycling News | 2026-07-15 07:00:45
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.
By Paul Ploumis
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.
RELATED NEWS:
MRAI Calls for Removal of Duty on Scrap Metal Imports
MRAI Forecasts Surge in Southeast Asia Ferrous Scrap Demand
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.
POLL
What is the primary reason MRAI wants India to remove the 2.5% import duty on aluminium scrap?
Frequently Asked Questions
- What policy change has MRAI requested from the Indian government?
MRAI has urged the government to eliminate the 2.5% Basic Customs Duty (BCD) on aluminium scrap imports.
- Why does MRAI want the import duty removed?
The association believes removing the duty would reduce production costs, strengthen the recycling sector, improve manufacturers' competitiveness, and support MSMEs.
- How dependent is India on imported aluminium scrap?
India imports approximately 80–85% of its aluminium scrap requirement to meet domestic demand.
