The Aluminium Association of India (AAI) has urged the Ministries of Finance and Mines to prevent India from becoming a “dumping ground” for low-grade aluminium scrap.
A statement from AAI said the association pointed out that aluminium is no longer a conventional metal, but a future-facing strategic material used across power, transport, infrastructure, defence, aerospace, packaging, electronics, utensils and renewable energy.
“Any unchecked entry of aluminium scrap can therefore have a wider economic impact by affecting product quality, consumer safety, manufacturing competitiveness and the credibility of India’s aluminium value chain,” it said in its letter to both ministries.
Calling for a balanced response that protects genuine recycling operations while curbing low-grade dumping, it said immediate fiscal interventions can be undertaken by maintaining basic customs duty (BCD) on aluminium scrap at 2.5 per cent.
This can be till the Government publishes the pending BIS scrap quality standards and introduces grade-wise HSN codes so that high-quality scrap is clearly separated from inferior grades, it said.
In its submissions, AAI said global economies are tightening their aluminium value chains by increasing tariffs (ranging from 15 to 50 per cent) and non-tariff barriers on Chapter 76. Furthermore, they promote export of low-quality aluminium scrap ( less than 90 per cent aluminium content) while retaining high quality scrap in their country.
This is leading to global aluminium surplus and low-quality aluminium scrap being dumped into India. In contrast, India’s absence of a notified scrap quality standard risks making it an open market for substandard global scrap, said AAI.
Seeking immediate publication of the final draft standard, Aluminium & Aluminium Alloy Scrap – Requirements & Conditions of Delivery, it said the issue has gone through detailed consultations involving different government agencies.
Published on July 10, 2026
