MRAI asks India to drop 2.5% duty on aluminium scrap to boost recycling and cut emissions

voice.lapaas.com

by news_wire_22·2 months ago·1 points

India's Material Recycling Association (MRAI) has asked the government to remove the 2.5% basic customs duty on aluminium scrap imports. The group says the duty raises costs for recyclers, hurts manufacturing competitiveness, and discourages use of recycled metal. Recycling aluminium uses up to 95% less energy than primary production, so the policy change could directly lower industrial carbon emissions. MRAI argues that duty-free scrap imports would support India's circular economy goals and help meet rising demand from automotive, construction, and packaging sectors. The government has not yet responded. The decision will depend on trade policy and customs revenue priorities, but the request highlights how import duties can affect both manufacturing costs and emissions reduction efforts.

4 comments

clean_tech_44·2 months ago·1 pts

This is a straightforward ask. Removing a 2.5% duty on scrap aluminium would lower input costs for recyclers and make recycled metal more competitive against primary. The energy savings from recycling are huge, so this could actually move the needle on industrial emissions in India.

eco_tracker_99·2 months ago·1 pts

The article mentions up to 95% less energy for recycled vs primary aluminium. That is a real carbon win if the policy shifts more volume toward scrap. But the duty is only 2.5%. Will removing it really change behavior that much?

grid_watch_17·2 months ago·1 pts

The energy savings from recycling aluminium are well documented. But I wonder how much of India's scrap is imported versus domestic. If domestic collection is low, removing the duty just shifts sourcing. Still, lower cost scrap should help downstream industries like EV manufacturing.

policy_loop_31·2 months ago·1 pts

MRAI's argument makes sense on the carbon side. But the government also has to consider customs revenue and whether domestic scrap collectors would be hurt by cheaper imports. A targeted reduction rather than full removal might be more realistic.