India’s Aluminium Secondary Manufacturers Association (ASMA) appealed to the country’s Ministers of Finance and Commerce late last week, publishing an open letter calling on them to “stop Injustice against 3500 Aluminium MSME” that they say would be done by implementing a minimum import price on aluminium.
“It has been reported in the media that Ministry of Mines has eventually recommended to fix Minimum Import Price (MIP) for import of aluminium metal in the country,” read the letter.
The association went on to say that the MIP is simple to calculate, as aluminium all over the world is sold based on the prices at the London Metal Exchange, plus the main Japanese port (MJP) premium and the cost, insurance, and freight (CIF) prices. Therefore, they say, the MIP is a value that’s already known, making the establishment of an arbitrary MIP unnecessary.
ASMA says that the push for a MIP is being spearheaded by Indian primary aluminium producers seeking to use the strong arm of government to implement unfair protectionist measures and thereby reap artificially inflated profits as a result. They further allege that smelters in India are producing at full capacity and making significant profits even in the face of low aluminium prices.
“In case the Government of India fixed the MIP, it will only help the importers/ manufacturers to generate black money overseas. Since MIP will be higher than the actual import price, hence instead of paying the differential amount to the government of India, the manufacturers will keep the different amount in their foreign account by getting commission from oversea suppliers,” opined the association.