Best forex robot Aluminium association seeks import duty hike ahead of Budget thumbnail

Best forex robot Aluminium association seeks import duty hike ahead of Budget

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KOLKATA: Aluminium Association of India has interested the federal government to increase import responsibilities on aluminium products to suppress imports in the interest for both primary and downstream players.

In a letter to the principal secretary to the PM, the AAI said its interaction remained in reaction to what it called as “deceptive and short-sighted advertorial project by (Aluminium Secondary Manufacturers Association -ASMA) versus the Main Indian Aluminium Industry“.

ASMA had prompted government to reduce import responsibility on primary aluminium to 2.5%, get rid of responsibility on scrap, boost task on downstream items to 20%from 7.5%and eliminate aluminium from all FTAs to protect the domestic industry from low-cost imports. In its letter, AAI objected to the accusations levelled against it and the domestic aluminium market with a point-by-point reaction.

” In FY2019, aluminium imports touched nearly 2.3 million tonne, the greatest ever, leading to a Forex (Click Here For Best Forex Techniques) outgo of $5.5 billion (Rs 38,000 crore). This was nearly 1.1%of country’s total import costs, which constituted 58%scrap imports,” the statement said. Aluminium imports have experienced a big surge in the last few years mostly from China, ASEAN countries and Middle East having surplus aluminium capability. These countries support their local aluminium market and provide concessions/ subsidies with low interest rate loans, cheaper power tariffs, preferential gas allowance, basic materials schedule, tax advantages & export tax rewards, it included.

AAI, which claimed to be “the legitimate voice of the industry” comprising main manufacturers, downstream producers, devices & item manufacturers and end-users with over 160 members, stated while “international aluminium demand is being driven by India and China, Indian aluminium production remains in line with country’s demand and capability utilization in FY-19 was 89%with production of 3695 kt.”.

Since FY11, domestic aluminium consumption has actually increased by 80%from 2207 kt to 3972 kt, while overall aluminium imports have increased by 164%from 878 kt to 2318 kt. Imports of aluminium scrap on which India is 100%import dependent has increased by 187%from 470 kt to 1349 kt, AAI said.

” Currently 60%of nation’s aluminium demand is being met through imports,” AAI stated adding, India has actually become a disposing ground of aluminium & scrap due to international trade war as United States imposed 10%import duty on aluminium and China imposed 25%responsibility on US scrap resulting diversion of worldwide scrap supply chain towards India,” AAI said.

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