Scrap Protectionism Threatens India's Recycling Future: Urgent Measures Needed

India PR Distribution
New Delhi [India], January 6: Threat on Scrap Protectionism: Scrap is essential raw material for the Indian economy in general and for the automobile industry in particular. It is one of the highest generators of employment.
"The secondary aluminium industry is a dynamic sector that breathes new life into old metal. It's not just about melting down used aluminium; it's about giving it a second chance to shine. Protecting that scrap is a crucial part of the process because every piece of scrap is a potential resource, a potential asset, a potential piece of the future. So, here's to the secondary aluminium industry, and to the guardians of scrap, who ensure that nothing goes to waste as Aluminium is endlessly recyclable without loss of any properties. The first aluminium produced is still in use and would continue to be".
Mohan Agarwal, CMD, CMR Green Technologies Ltd, Director, Material Recycling Association of India (MRAI)
India's scrap recycling industry is growing rapidly. The global metal scrap recycling market is worth over USD 500 billion, and India's share is USD 11 billion or 2.2% of the industry. Recycling is the basis for a circular economy. The scrap industry contributes substantially to the growth of the Indian economy in terms of;
* Creating employment opportunities. Roles & job types, such as collection sorting, processing and recycling which provide employment to a diverse workforce.
* Promoting a circular economy by reducing waste and conserving resources.
* Recycling & reuse of scrap material contribute to cost saving and resource efficiency.
* Skill development and job growth within the industry.
* Scrap material reduces the need for extracting and processing virgin resources, leading to lower carbon emissions and environmental impact.
* Proper waste management and recycling practices to minimize environmental pollution and promote sustainability.
If you see Aluminium consumption in India is at 2.5 kg per capita which is much below the global average of 11 kg per capita (South Korea- 46.7 kg, Germany- 29.9 kg, US - 18 kg, Japan - 16kg, China - 24 kg, Brazil- 8.6 kg, Russia- 8.4 kg). To reach the global average of 11 kg per capita, India will require an additional annual consumption of 16mn tonnes, thus, making it the second largest consumer in the world.
However, sustaining this demand is contingent upon continued scrap imports, necessitated by historically low per capita consumption rates. Importing scrap material serves multiple critical purposes:
* Meeting Growing Demand: Ensures a consistent supply to meet the escalating demand for recycled aluminium products.
* Quality Assurance: Imported scrap adheres to superior quality benchmarks demanded by Indian industries.
* Diversification: Importing from multiple sources mitigates supply chain disruptions, ensuring a stable supply.
* Economic Advantages: It is cheaper than primary metal. It also fosters international trade relations and creates job opportunities across various sectors.
* Support for Local Economies: Boosts local economies and bolsters India's workforce development.
Nevertheless, global scrap protectionism measures, witnessed in various countries, including the EU, UAE, and South Africa, pose a substantial threat to the recycling industry. The impending EU Waste Management Rule, effective January 1, 2025, for non-OECD countries, adds complexity to the situation.
The potential fallout from these protectionist measures includes disruptions in the global recycling supply chain, decreased access to raw materials, economic repercussions such as job losses and reduced revenue, and adverse environmental implications.
To navigate this impending challenge and protect forthcoming investments in aluminium recycling capacity, strategic government interventions are indispensable:
* Custom Duty Reduction: Temporarily reduce custom duties on non-ferrous scrap imports until domestic availability aligns with demand and also the required quality standards.
* BIS Standards Facilitation: Facilitate the industry by avoiding non-tariff barriers while ensuring compliance with Bureau of Indian Standards for non-ferrous scrap.
* PLI Scheme Inclusion: Incorporate all secondary route products into the Production Linked Incentive (PLI) scheme for the non-ferrous industry.
* EPR Implementation: Implement Extended Producer Responsibility (EPR) in metals without disrupting established market efficiencies.
* Regulatory Framework Strengthening: Develop and implement robust regulatory frameworks ensuring environmental compliance, quality control, and material traceability in the recycling sector.
Global Leaders to Address India's Recycling Industry Challenges at the Largest Material Recycling Conference, 11th IMRC 2024 in (23rd), 24th & 25th January 2024
This event will convene distinguished global leaders, offering a platform for keynote speeches, interactive panel discussions, enriching workshops, and valuable networking sessions. The IMRC aims to facilitate the exchange of knowledge and collaborative strategies among industry experts. Furthermore, it will present state-of-the-art recycling technologies and innovative waste management solutions, enriching an in-depth discourse and actionable outcomes to drive the advancement of the recycling sector.
For more details Contact Narendra L. on: 9820504803
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