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Indian recyclers seek government intervention on EU waste ban proposal - Finance news and analysis from Global Banking & Finance Review
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Indian recyclers seek government intervention on EU waste ban proposal

Published by Global Banking & Finance Review

Posted on September 24, 2026

2 min read

· Last updated: September 24, 2026

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Indian Recyclers Call for Government Action on Proposed EU Metal Waste Ban

By Neha Arora

Indian Recyclers Respond to EU Metal Waste Export Proposal

NEW DELHI, Sept 23 (Reuters) - A leading Indian recyclers' group representing small and mid-sized firms has sought intervention from the government over India's proposed exclusion from European Union metal waste exports, according to a letter reviewed by Reuters.

Government Engagement and Official Response

In a response late on Wednesday, India's federal Ministry of Commerce and Industry said it remains engaged with the EU side on the matter.

Details of the EU Proposal

  • Proposed Ban Timeline and Rationale

    On September 18, the European Commission proposed barring India from importing EU metal waste under rules due to take effect in May 2027.

    The Commission said metal waste warrants stricter controls because it may contain persistent and toxic heavy metals.

  • India’s Dependence on EU Metal Scrap

    India, a major global scrap buyer, sources about a quarter of its metal scrap imports from the EU, industry estimates show.

    In 2025/26, India imported around 20% of aluminium scrap from the EU, 22% of copper and copper alloy scrap, 20% of lead scrap and 40% of zinc scrap, according to data from the Material Recycling Association of India.

Impact on Indian Recyclers

Supply Chain Disruption and Economic Concerns

"Disruption of these established supply chains would therefore directly affect Indian recyclers, particularly MSMEs (micro, small and medium enterprises), and could increase raw-material costs and India's dependence on virgin metal resources," MRAI said in its letter to the federal trade ministry sent on Wednesday.

Environmental Regulations in India

MRAI argued in the letter that India has an extensive environmental regulatory framework governing metal recycling and processing facilities.

Industry’s Call for Policy Support

Accusations of Resource Protectionism

Calling the EU proposal "resource protectionism", MRAI said scrap had become strategically important to Europe's metals industry and urged zero-duty scrap imports under the India-EU trade deal expected this year.

Conclusion and Next Steps

(Reporting by Neha Arora; Editing by Louise Heavens and Muralikumar Anantharaman)

Key Takeaways

  • The EU’s proposed Waste Shipment Regulation would bar India from importing metal scrap unless approved by November 2026, with enforcement starting May 21, 2027.
  • India sources about 20–40% of its aluminium, copper, lead and zinc scrap from the EU, and a ban could increase costs and reliance on virgin metals for MSMEs.
  • Indian recyclers argue that India has robust environmental regulations, labeling the EU move as “resource protectionism,” and are seeking zero‑duty scrap imports under the upcoming India‑EU trade deal.

Frequently Asked Questions

Why are Indian recyclers concerned about the EU metal waste export ban?
Indian recyclers fear that the EU ban on metal waste exports to India could disrupt supply chains, increase raw material costs, and heighten India's reliance on virgin metals.
How much of India's scrap metal imports come from the EU?
About a quarter of India's metal scrap imports come from the EU, including significant portions of aluminium, copper, lead, and zinc scrap.
When is the EU metal waste export ban expected to take effect?
The proposed EU ban on metal waste exports to India is due to take effect in May 2027.
What action are Indian recyclers requesting from the government?
Indian recyclers, through MRAI, urge the government to engage with the EU to ensure continued scrap metal imports and to urge for zero-duty scrap imports under the upcoming trade deal.
What justification does the EU give for stricter controls on metal waste exports?
The EU states that metal waste requires stricter controls because it may contain persistent and toxic heavy metals.

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