India’s top mining industry federation is seeking higher import taxes on metals such as zinc, copper and aluminium to help halt a tide of cheaper imports, especially from China, according to a note it sent to the government and seen by Reuters.

The government should raise import taxes to 10-15 per cent on several aluminium products, including scrap to 10 per cent from 2.5 per cent, the Federation of Indian Mineral Industries (FIMI) said in the note addressed to the Ministry of Finance. The federation provided Reuters with summary of its points in the note.

India’s aluminium producers are expected to raise their combined production capacity to 4.6 million tonnes in the next two years, up from 4.1 million tonnes now. India is the world’s third-biggest primary aluminium producer.

During the fiscal year to March 2023, India’s aluminium demand is expected to reach 4.2 million tonnes. It imported 2.3 million tonnes of aluminium in the previous fiscal year, much of that supply cheap imports.

“The major threat of imports is from China, which constitutes over 85 per cent share of downstream aluminium imports,” the FIMI said in the note to the finance ministry. The federation said most metal scrap imports were coming from Britain, Saudi Arabia, the US, and the UAE.