Govt considering MIP on some aluminium products: Piyush Goyal

Giant 9-ton aluminium ingots are seen at the Rusal Sayanogorsk aluminium smelter outside the Siberian town of Sayanogorsk, Russia, March 15, 2017. Picture taken March 15, 2017. REUTERS/Ilya Naymushin - RTX3196N

The government is considering all options, including imposition of minimum import price on certain categories of aluminium products, to protect the domestic industry, a union minister said today.

"This Ministry (Mines) is making all possible efforts, including considering imposition of Minimum Import Price (MIP) on certain categories of aluminium products to protect the domestic industry," Mines Minister Piyush Goyal said in a written reply to the Lok Sabha.

Representations for imposition of MIP on aluminium products have been received from the Aluminium Association of India, he said.

As per the study report prepared by MECON on assessment of MIP for aluminium in India, loss of primary aluminium producers was Rs 943 crore in FY2014-15. This loss increased to Rs 4,283 crore during FY2015-16.

"The reason behind this was an increase in production cost and slump in London Metal Exchange (LME) price of aluminium from average USD 2,317.50/MT in 2011-12 to USD 1591.82/MT in 2015-16," he said, adding that there was an increase in import from China amid weak domestic demand.