Recycling Industry Advocates for Duty-Free Aluminium Scrap Imports

As the pivotal budget session looms closer, a significant voice from within the recycling industry, identified as recycling industry bodyAI, has made a bold request to the governmental authorities. This plea is centered around the pressing need to revoke the import duty currently imposed on aluminium scrap. The rationale behind this appeal is deeply rooted in the desire to nurture and propagate sustainability within the sector, a concern that resonates across the globe in our collective quest for environmental stewardship.

The Material Recycling Association of India (MRAI) sheds light on a striking contrast that underscores the gravity of this request. There’s an illuminating comparison to be made between the carbon footprint of recycled aluminium and its freshly smelted counterpart. The figures are startling: recycling aluminium scrap results in a mere 0.3 million tonnes (MT) of CO2 emissions per tonne of production. Contrast this with the hefty 14 tonnes of carbon emissions produced for every MT of aluminium created through traditional smelting processes, which rely heavily on coal-based power supply systems. This stark disparity not only highlights the environmental efficiency of recycling but also underscores the urgent need for policy reforms that favor such practices.

In a letter addressed to Finance Minister Nirmala Sitharaman, theAI voices a critical challenge stifling the growth and effectiveness of the Indian aluminium recycling industry. This hurdle comes in the form of a 2.5 percent import duty imposed on aluminium scrap—a vital raw material for the recycling process. The Association’s stance is clear: this duty should be eliminated, at least until the domestic market can supply sufficient quantities of quality scrap.

With Finance Minister Nirmala Sitharaman poised to unveil the full Union Budget for the fiscal year 2024-25 before Parliament on July 23, the timing of this appeal underscores the urgency and relevance of the matter at hand. The backdrop to this request is a global acknowledgment of the sustainability and recyclability of aluminium scrap. Countries around the world are waking up to the vital role that scrap plays in facilitating a circular economy, one that minimizes waste and maximizes the reutilization of resources.

India’s ambitious trajectory of GDP growth and infrastructural development portends a surge in demand for aluminium. This demand spike will inevitably place additional pressure on both the sourcing of raw materials and the sustainability of production practices. The primary production of aluminium, already a resource-intensive process involving the consumption of vast quantities of bauxite ore and coal, also results in significant waste generation.

TheAI highlights a crucial shift in the Indian aluminium sector—a growing reliance on recycling. Primarily driven by the stark contrast in energy consumption between recycling and primary production, the industry is gravitating towards recycling as a more sustainable and environmentally friendly method of aluminium production.

However, this transition faces a significant bottleneck: India’s per capita consumption of aluminium stands at a mere 2.5 kg, a figure dwarfed by the global average of 11 kg. This discrepancy signifies a formidable challenge for the recycling industry, which must increasingly turn to imports to secure the quality aluminium scrap needed to meet domestic demands.

AI President Sanjay Mehta envisions the aluminium recycling industry as a cornerstone of India’s efforts to combat climate change and enhance environmental sustainability. By reducing reliance on raw materials and safeguarding natural resources like bauxite, recycling represents a formidable ally in the fight against climate change and the quest to reduce landfill waste.

“The world recognizes metal scrap, particularly aluminium, as the greenest raw material for metal production,” states Dhawal Shah, Senior Vice President of AI. Imposing import duties on such a vital resource is seen as counterproductive, potentially hindering India’s progress towards its sustainability and low carbon objectives.

Furthermore, the association has extended its advocacy to encompass other materials as well, calling for zero duty on copper scrap and brass scrap, currently taxed at 2.5 percent, alongside similar concessions for zinc and lead, which are subjected to a 5 percent import duty.

In conclusion, the unfolding narrative around the import duties on aluminium scrap and other recyclable materials isn’t just a debate about taxes; it’s a broader discourse on how policy decisions can impact the planet’s ecological wellbeing and sustainability. As India stands poised to step into another financial year, the choices made now could either pave the way for a greener, more sustainable future or tether us more firmly to outdated practices that bear a heavier environmental cost. As we await the final word from the halls of power, one thing remains clear: the call for change is both loud and reasoned, underpinned by a vision of sustainability that transcends borders and unites us all in a common cause. For more insights and discussions on trending news like this, visit DeFi Daily News.

So, as the fiscal gavel prepares to strike, marking the onset of new economic policies, the world watches with bated breath. Will this be the moment where policy aligns with the pressing needs of the planet, charting a course towards environmental sustainability and resilience? Only time will tell, but the dialogue spurred by theAI’s proactive stance promises to keep this critical issue at the forefront of public discourse and policy consideration.