| Date: |
12-02-2015 |
| Subject: |
India MRAI calls for withdrawal of import duty on steel scrap |
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NEW DELHI : The Metal Recycling Association of India (MRAI) has urged the government to get rid of the import duty on steel scrap. The demand was raised during its second international conference held in Mumbai last week. According to MRAI, the 5% duty imposed two years back, has caused significant damage to the recycling business.
MRAI pointed out that no other nation in the world has imposed import tax on steel scrap. Although the country has signed free trade agreements with several countries, the 5% duty on steel scrap imports have eaten into the profitability of metal recyclers in the country. Ikbal Nathani, President, MRAI stated that the import tax has left the entire recycling operations in the country ‘bleeding’. He noted that semi-finished products are not subject to any import tax. He urged the government to remove the import duty on steel scrap to offer a level-playing field to the country’s recycling industry.
A recent report published by Frost & Sullivan had pointed out that the import duty structure has resulted in substantial loss of steel export business to Indian steelmakers. The abolition of the duty will result in cost-effective secondary steel production, thereby enabling the steelmakers in the country to compete with leading steel export nations such as China and Taiwan.
According to estimates, India consumes 20.4 million tonnes of scrap per annum. The country imports nearly 6.5 million tons of scrap every year, constituting almost a third of the total scrap consumption by the country. The country is the world’s third largest importer of scrap. Studies indicate that the country’s metal recycling industry is poised to grow at 11.4% per annum until 2020.
Source : metal.com
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