Budget 2020: Aluminium industry seeks lower import duty on raw materials


PTI, Jan 31, 2020, 2:53 PM IST

Bhubaneswar: Aluminium industry has urged the Centre to cut basic custom duty on critical raw materials in the upcoming Union Budget, saying high duties will be detrimental for local manufacturers.

In its suggestions for the Union Budget for 2020-21, the aluminium industry has said that the basic customs duty on raw materials like caustic soda lye should be slashed to 2.5 per cent from existing 7.5 per cent, the Aluminium Association of India (AAI) said in a statement.

It said the inverted duty structure on raw materials is a huge disadvantage for domestic aluminium producers dependent on imported raw materials.

“It results in Indian finished goods being costlier and uncompetitive, rendering negative protection against cheaper imports of finished products. It also discourages domestic value addition within the country,” it said.

To improve the cost structure and enhance the competitiveness of the aluminium industry, the AAI said it has requested the government for correction of inverted duty structure.

Describing caustic soda lye as a major raw material for alumina production which is further used for producing aluminium metal, the association said it contributes to over 20 per cent of alumina production cost.

India is a net importer of caustic soda and over 60 per cent imports goes to the aluminium industry. Stating that aluminium industry is a bulk consumer of Caustic Soda and highly dependent on imports, it said the industry is not able to meet its demand through domestic sources due to several constraints related to quantity, infrastructure and logistics.

While a majority of Caustic Soda production is in western India (Gujarat, Maharashtra, Rajasthan), major alumina producers are in the eastern region (Odisha, Chhattisgarh, Andhra Pradesh, Uttar Pradesh), resulting in high logistics costs, it said.

The association further pointed out that imports are already restricted and multiple tariff and non-tariff barriers exist and said anti-dumping duty is also in place on caustic soda imports from countries like China and Korea.

Therefore, the inverted duty of caustic soda lye be rationalized and reduced from 7.5 per cent to 2.5 per cent, it said.

AAI said Indian aluminium industry is under immense threat and struggling to retain global competitiveness due to recent global developments, rising imports, declining domestic market share, increasing production and logistics costs.

In view of these, any further restriction on caustic soda will be highly detrimental for the sustainability of the domestic aluminium industry, the AAI added.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Kinnigoli: Truck carrying red stone collides with Auto-Rickshaw; driver injured

UP govt to install 150,000 toilets for Maha Kumbh, set up paying guest facilities

Kavoor Police arrest two notorious cattle thieves

Udupi: Unidentified body found near Bailkere’s Vidhyodaya School

Sexual harassment case cannot be closed on basis of compromise between parties: SC

MLC Ivan D’Souza defends CM Siddaramaiah’s Lokayukta appearance, criticizes BJP’s ‘Drama’ claims

Ranji Trophy: Shreyas Iyer’s majestic 233 puts Mumbai in complete command against Odisha

Related Articles More

Sensex, Nifty fall over 1 pc, snap two-day rally ahead of US Fed interest rate decision

SC orders liquidation of grounded air carrier Jet Airways’ assets

Home-cooked meals become dearer in October on costlier vegetables

Sensex, Nifty surge over 1 pc on heavy buying in IT stocks as Trump set to win US polls

Das says incoming data on GDP growth mixed but positives outweigh negatives

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Felling of trees: What is being done to restore Delhi Ridge? SC asks DDA

Kinnigoli: Truck carrying red stone collides with Auto-Rickshaw; driver injured

UP govt to install 150,000 toilets for Maha Kumbh, set up paying guest facilities

Kavoor Police arrest two notorious cattle thieves

Udupi: Unidentified body found near Bailkere’s Vidhyodaya School

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.