Commerce ministry seeks details from mines ministry on aluminium MIP

The Dollar Business Bureau
 
The Ministry of Commerce on Monday sought clarifications from the Ministry of Mines with respect to the minimum import price of aluminium, as the government looks to take more steps to protect the domestic steel industry. 

“They (the commerce ministry) raised certain queries. We are sending replies of those queries to the commerce ministry,” Mines Secretary Balvinder Kumar told PTI. He said the government will announce additional measures within a fortnight. 

The government has been contemplating on imposing MIP on steel, a decision which could raise cheaper imports from various countries, thereby hurting the domestic aluminium manufacturers. 

The Indian aluminium industry had earlier sought restrictions of MIP on aluminium imports, as on steel. India already has restrictive arrangements on steel. 

A suppressed domestic demand of aluminium in China had forced the world’s largest manufacturer and consumer to explore other markets for dumping the metal. 

In August 2016, the Aluminium Association of India called on Finance Minister Arun Jaitley to pitch for protective measures against cheap aluminium imports. Almost 50% of aluminium consumed in the Indian market is being shipped from various countries, but mainly from China. 

Due to an influx of aluminium imports, mainly originating from China, Indian aluminium manufacturers have registered losses of about Rs.4,025 crore in 2015-16, much more than the losses of Rs1,480 crore incurred in 2014-15. 

India’s annual consumption of aluminium is about three metric tonnes and its output capacity is 4 metric tonnes. Almost half of the domestic demand is met through cheap imports.  

Import of aluminium rose 159% in 2015 as against that in 2011 levels.