Aluminium Industry Meets Government, Seeks 10% Import Duty On Chinese Imports

The Aluminium Association of India (AAI), the industry body of Indian aluminium producers, met the Secretary, Ministry of Mines and Chairman of Central Board of Excise and Customs on Thursday, seeking government action to protect the cheap imports and crushing meltdown in global prices by imposing an import duty of 10%.

The delegation also proposed a protectionist policy of mandating Indian buyers to purchase the products of Indian aluminium producers. The association said the new projects set up by Indian players, which could double aluminium production in the country, were functioning at less than the capacity.

Total imports to India have surged by over 159% to 1,563 kilo tonne (KT) in 2015 as against the import of 881 KT in 2011, according to AAI. The association said that imports, mainly from China and Middle-East countries, accounted for 56% of Indian aluminium consumption in the last financial year, while products of Indian producers account for only 44%.

AAI added that the situation has worsened further due to continuously sliding international prices in recent years. "In last three years, aluminium prices on London Metal Exchnage have come down by 35% to $1660 per tonne in June, 2015 from a peak of $2555 per tonne witnessed in June, 2011," the statement said.

AAI President and BALCO's vice chairman S.K Roongta headed the delegation. Abhijit Pati, CEO at Vedanta Aluminium and Hindalco's deputy managing director Satish Pai were also part of the delegation.

Source:- economictimes.indiatimes.com