Miners’ industry body calls for increasing basic custom duty on aluminium imports to 15%

Putting forth recommendations in the run-up to the Union Budget for fiscal year 2026-27, the Federation of Indian Mineral Industries (FIMI), the industry body for miners,has urged the government to increase the basic customs duty on primary aluminium and products made from it to 15%.

This would help “counter the sharp rise in aluminium imports and protect domestic manufacturing”, argues FIMI.

At present, primary aluminium attracts a BCD of 7.5%, while products processed from it attract either a 7.5% or 10% rate, depending on their categorisation according to trade nomenclature.

The industry body argues that aluminium imports, especially from China, Russia, ASEAN nations and the Middle East have surged in the recent years. It states that notwithstanding India having “sufficient” domestic capacity, about 55% of the country’s demand for aluminium in fiscal year 2026 is projected to be met through imports.

The FIMI states that the threat from increasing aluminum imports has contributed to a “declining domestic market share.”

Its statement further added, “India’s aluminium manufacturing base is currently under threat by a surge in imports from aluminium surplus nations driven by global tariff and non-tariff protectionist measures on aluminium.”

The industry body also voiced concerns about the “rising inflow” of aluminium scrap, urging the government to institute quality standards in line with global practices to avert thediversion of low-quality scrap from U.S.A, E.U., UAE and U.K. into India.

Additionally, the industry body of miners also seeks the government consider reducing basic customs duty on critical raw materials required for aluminium production. It argues despite India holding world’s largest reserves of coal and bauxite, domestic costs for producing aluminium are among the highest globally. “Indian producers face high production costs due to expensive raw materials, an inverted duty structure, various taxes and cesses, electricity duty and high logistics costs,” it argued.