Ahead of the government’s financial budget for 2020 on Feb 1, the Indian metal industry has sought changes in imports and export duties on raw materials required for the manufacture of metals.
The Material Recycling Association of India has appealed to the government to abolish duties on imports of metallic scrap into India.
Presently, imports of aluminium and copper scrap attract a 2.5pc, and zinc and lead attract a 5pc duty.
The association believes a revised duty structure will safeguard Indian manufacturers against dumping of cheap products from other countries. The imports of finished products of these metals have zero duty.
The Indian Stainless Steel Development Association (Issda) wants duty on key imported raw materials like ferro-nickel and stainless-steel scrap to be abolished.
The domestic stainless steel industry faces challenges like dumping from countries like China and Indonesia, coupled with the cost of higher duties and a supply scarcity of raw materials, according to Issda.
The association requested the government to abolish the 7.5pc import duty and impose a minimum 20pc export duty on graphite electrodes to make sufficient raw material available for domestic manufacturers.
India’s aluminium industry seeks lower custom duties on raw material like caustic soda lye from the present 7.5pc to 2.5pc.
Aluminium producers are demanding a raise of duties on semi-finished and finished aluminium products imported into the country. India’s mines ministry has proposed an increase in customs duty levied on aluminium bars, foil, plates, rods and wire.
The steel ministry wants zero duty on raw material imports, including coking coke, pet coke, limestone, dolomite and zinc. Met coke and zinc at present are subject to a duty of 5pc, and for the remaining raw material, import duty is at 2.5pc.
The government at present levies a 2.5pc duty on anthracite coal which plays a key role in steel manufacturing. Steelmakers have requested that reductants used in the sector should be available to Indian producers at a globally competitive price to reduce cost of production.