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NEW DELHI, Dec 14: \u00a0Cheap imports of copper under multiple free trade agreements are \u201cseverely damaging\u201d Indian manufacturing, industry body IPCPA said and sought immediate government interventions in the form of a safeguard duty and quantitative restrictions on inbound shipments from overseas.<\/p>\n
\u00a0 According to the Indian Primary Copper Producers Association (IPCPA), a surge in zero-duty copper imports is eroding the country\u2019s domestic smelting and downstream manufacturing sector, even as over Rs 20,000 crore has been invested in recent years to achieve self-sufficiency.<\/p>\n
\u201cZero-duty imports from FTA partners are severely damaging Indian smelting and refining,\u201d the ICPA said, and demanded that a 3 per cent safeguard duty should be imposed on copper imports of certain categories, irrespective of the FTA (free trade agreement) status.<\/p>\n
It also raised concerns about the India-UAE Comprehensive Economic Partnership Agreement (CEPA), under which customs duties on copper wire rods have fallen to one per cent in FY26, and the levy is expected to be fully eliminated by FY27.<\/p>\n
The problem worsened due to an inflated Tariff Rate Quota (TRQ) of 85,000 tonnes per annum (KTPA) \u2014 far above the intended 29 KTPA \u2014 triggering a 340 per cent surge in imports from the UAE between FY22 and FY26, the industry body said, adding that the tariff rate quota should be corrected and capped at its original level.<\/p>\n
The tariff rate quota mechanism allows certain quantity of imports at a reduced or zero duty.<\/p>\n
The IPCPA further said that the India-ASEAN CEPA includes a cumulative value-addition rule that permits Indonesian copper cathodes \u2014 after significant processing in Indonesia \u2014 to receive only minimal further treatment in Thailand, Malaysia, or Vietnam before entering India duty-free. From 2020 to 2024, this provision drove a 66 per cent surge in copper wire imports and a 103 per cent increase in copper tube imports.<\/p>\n
Meanwhile, Indonesia sharply expanded its smelting capacity, bolstering its export strength. Chinese investments in ASEAN copper operations have further skewed competition, leading Indian producers to call for adding copper wires, tubes, and foils to the exclusion list amid the current FTA review.<\/p>\n
The global copper smelting industry is under severe economic stress. One of the sector\u2019s primary revenue streams \u2014 TC\/RC (Treatment and Refining Charges) \u2014 has collapsed by 80 per cent. For 2026, TC\/RC levels are projected to fall to zero, making smelting and refining operations increasingly unviable for Indian producers.<\/p>\n
This challenge is compounded by zero-duty imports of copper cathodes, rods, wires, and tubes from the UAE, ASEAN, and Japan, which are entering India under various FTAs and displacing domestic production.<\/p>\n
\u201cTherefore, the copper industry seeks urgent government intervention to address FTA-related issues through\u2026 imposing an additional three per cent duty on imports of (copper cathode, rod, wire and tube), implementing quantitative restrictions on imports to safeguard the domestic copper industry,\u201d it said.\u00a0 (PTI)<\/p>\n<\/p><\/div>\n
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