Copper producers want incentives back for boosting exports

The Dollar Business Bureau In a move to meet the global competency in copper industry, key producers of copper have joined together seeking incentivisation of duty on exports of refined copper. A public sector company Hindustan Copper and Hindalco Industries-a private sector copper producer, along with an MNC giant-Sesa Sterlite, have joined hands seeking restoration of 2% duty incentive on refined copper exports that was removed earlier this year, said the reports. The three copper producers’ forum- Indian Primary Copper Producers Association, was said to have reportedly submitted the representation to the Ministry of Commerce seeking the duty incentive on the refined copper exports, the reports added. According to the association, withdrawal of the duty incentive on copper exports, that has been effective from April 1, 2015, has made the country’s copper exports uncompetitive in the international markets. While, according to the Director General of Foreign Trade (DGFT)’s data the copper exports from the country till end of December 2014 stood at $540 million, the association’s estimates say that the total worth of exports of refined copper by the primary producers alone during the whole Financial Year 2014-15, stands at $660 million. The copper refiners, affected by low domestic demand, have been using 80% of the installed capacity 9.5 lakh tonnes, say the reports. On the weak domestic demand, a spokesperson from the association was said to have stated that the growth in the level of imports during the last three years have resulted in weak domestic demand for copper refiners. The Indian producers have been rapidly losing their share in the domestic market, as the imports in the last three years have grown from 85,000 tonnes to 1.66 lakh per tonne, the spokesperson was quoted to have said, according to the reports. The infrastructure inefficiencies like the case of ‘Indian refiners’ plants being older than that of the international competitors’, higher costs of raw materials and interest compared with global markets, among others, were said to have resulted in increase of costs by the Indian refiners. Higher costs of operations at the Indian ports and freight costs to the consumer markets, in comparison with the costs by the key competitors like Japan, South Korea, Indonesia, Vietnam, among others, were also said to have raised concerns for the Indian copper exports in the international markets.    

May 25, 2015 | 7:42 pm IST.