The Material Recycling Association of India (MRAI) has urged the government to allow zero duty on import of non-ferrous scrap metal into India. Import duty on non-ferrous metals, which includes aluminium, copper, lead, zinc among others, is in the range of 2.5-5 per cent.
According to recyclers, the domestic generation of non-ferrous scrap is only 10-20 per cent of the requirement and the industry is largely dependent on imports from the European Union, the UK and West Asia.
However, the UAE has recently introduced a duty on scrap exports and the EU has proposed to introduce carbon tax for certain sectors from January 1, 2026.
“While many countries are restricting the export of scrap and protecting it for their own use, we charge a duty for import of non-ferrous scrap to India irrespective of the fact that the country is largely dependant on scrap imports without which recycling trade and industry cannot survive,” said Sanjay Mehta, president, MRAI, at the International Material Recycling conference held in the city on Wednesday.
“For example, 90 per cent of aluminium scrap used in India is imported, while more than 50 per cent of copper and brass scrap, 50 per cent of lead and zinc scrap are imported. If we would like to have regular scrap coming to us, then we must remove the import duty on all kinds of non-ferrous scrap,” he said.
The industry body hopes that the government would consider its proposal in the Union budget.