MRAI Urges PMO to Abolish 2.5 Percent Import Duty on Aluminium Scrap
The Material Recycling Association of India (MRAI), based in Mumbai, has urged the Prime Minister's Office (PMO) to abolish the 2.5% Basic Customs Duty on imported aluminium scrap. The industry body stated that the levy is raising input costs for recyclers and downstream manufacturers at a time when India depends on imports for nearly 80% to 85% of its aluminium scrap requirement.
In its representation to the PMO, the association argued that removing the duty would strengthen thousands of micro, small, and medium enterprises (MSMEs) and improve the competitiveness of Indian manufacturers. It would also help create employment and support the country's transition toward low-carbon manufacturing.
According to MRAI, India's secondary aluminium production has expanded from about 0.85 million tonnes in FY16 to nearly 2.2 million tonnes in FY26. The sector now accounts for around 35% of domestic aluminium consumption and supports nearly seven lakh direct and indirect jobs, with women making up about 46% of the skilled workforce engaged in sorting, segregation, and processing.
MRAI President Sanjay Mehta stated that aluminium scrap should be treated as a strategic industrial raw material rather than as waste. He noted that removing the import duty would improve raw material security, lower production costs, and help India emerge as a global hub for aluminium recycling and advanced material recovery.
The association pointed out that aluminium scrap is the only major non-ferrous metal scrap that still attracts an import duty, while copper, zinc, and lead scrap have already been exempted. Competing countries such as Thailand, Malaysia, Indonesia, Japan, and South Korea allow duty-free imports of aluminium scrap, giving their recycling industries a cost advantage.
MRAI Senior Vice-president Dhawal Shah highlighted emerging supply risks, noting that several exporting regions, including the European Union, the US, GCC countries, and parts of Africa, are increasingly adopting policies to retain scrap for domestic value addition. This makes uninterrupted access to imported scrap critical for India.
A Joint Working Group constituted by the Ministry of Mines, comprising representatives of primary aluminium producers and the recycling industry, met on June 17. The group agreed that the removal of the 2.5% duty should be considered in the larger national interest.
