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Govt mulling imposition of MIP on some aluminium products: Piyush Goyal

31 Mar 2017 Evaluate

In wake of rising imports of downstream aluminium products in the country, the Union Minister Piyush Goyal has said that the government is considering all options, including the possibility of imposing minimum import price (MIP) on certain categories of aluminium products to protect the domestic industry.

The Aluminium Association of India had asked the government for imposition of MIP on aluminium. As per a study report prepared by Metallurgical & Engineering Consultants (India) Limited (MECON), India’s state-run engineering consulting firm, commissioned by the Aluminium Association of India to study solutions for protecting the domestic aluminium industry, loss of primary aluminium producers was Rs 943 crore in FY2014-15, which increased to Rs 4,283 crore during FY2015-16.

The primary aluminium producers were facing loss due to an increase in production cost and slump in London Metal Exchange (LME) price of aluminium from average $ 2,317.50/MT in 2011-12 to $ 1591.82/MT in 2015-16. Further, there was an increase in import from China amid weak domestic demand.

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