By Anil Mathews (ScrapMonster Author)
January 22, 2016 07:48:59 AM
NEW DELHI (Scrap Monster):The Metal Recycling Association of India (MRAI) has urged the government to scrap import duties on inbound shipments of ferrous and non-ferrous scrap. The industry body has also called upon the government to exempt scrap imports from Special Additional Duty (SAD). MRAI noted that favorable action from the government would give big boost to the struggling sector.
According to MRAI, the country’s metal recycling industry is expected to grow at a CAGR of 11.4% through 2020. The government should take necessary initiatives to frame policies that could help the sector to achieve the projected growth.
One of the top priorities of the government must be to reorganize the pres-shipment inspection procedures. The Association noted that inconsistencies exist in customs procedures and pricing of scrap imports. It further called upon the government to establish a regulatory authority to control and monitor shipping lines.
MRAI demanded removal of 4% Special Additional Duty for recycling sector, citing that the additional duty has led to heavy tax burden for the already struggling industry in the country. The higher import duty levied on inbound scrap shipments has resulted in India losing sizeable market share when compared with neighboring countries.
India imports almost one-third of its annual scrap requirement. The annual scrap consumption by the country is estimated at nearly 20.40 million tonnes currently, which is expected to grow at a CAGR of 11.4% to touch 30.03 million tonnes by 2020. The country’s scrap imports are currently valued at INR 39,000 crores. The country is the world’s third largest scrap importer.
Metal Recycling Association of India (MRAI) is a National Association representing India’s Ferrous and Non-Ferrous Metals Recycling Industry that employs lakhs of people directly and indirectly. MRAI brings over 500 individual Members as well as various Regional Recycling Associations representing over 7000 companies under one apex national body.