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

Published by Global Banking & Finance Review

Posted on September 23, 2026

2 min read

· Last updated: September 23, 2026

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Indian Recyclers Urge Government Response to EU Metal Waste Export Ban Proposal

Indian Recyclers Seek Government Intervention Over EU Metal Waste Export Ban

By Neha Arora

Background of the EU 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.

  • 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 Imports

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.
Potential Impact on Indian Recyclers

"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.

Arguments and Appeals by Indian Recyclers

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

Official Responses and Ongoing Developments

India's trade ministry and MRAI did not immediately respond to Reuters requests for comment.

(Reporting by Neha Arora, Editing by Louise Heavens)

Key Takeaways

  • On September 18, the European Commission proposed a Waste Shipment Regulation that would bar non‑OECD countries—including India—from importing EU metal waste starting May 21, 2027, due to concerns over toxic heavy metals (live.euronext.com).
  • India sources a significant share of its metal scrap from the EU: in 2025/26, about 20% of aluminium, 22% of copper and copper alloy, 20% of lead, and 40% of zinc scrap imports, according to Material Recycling Association of India (MRAI) (live.euronext.com).
  • The scrap recycling sector, especially MSMEs, warns that supply chain disruption may raise raw‑material costs and increase dependence on virgin metals; MRAI highlighted India’s robust environmental regulation framework and urged zero‑duty access for scrap under the forthcoming India‑EU Free Trade Agreement (live.euronext.com).

References

Frequently Asked Questions

What is the EU metal waste export ban proposal?
The European Commission proposed barring India from importing EU metal waste under rules set to take effect in May 2027.
Why are Indian recyclers concerned about the EU waste ban?
Indian recyclers fear the ban will disrupt supply chains, increase raw material costs, and raise India's dependence on virgin metal resources.
How much metal scrap does India import from the EU?
India sources about a quarter of its metal scrap imports from the EU, with specific shares for aluminium, copper, lead, and zinc scrap.
What actions has the Material Recycling Association of India taken?
MRAI sent a letter to India’s trade ministry urging government intervention and zero-duty scrap imports under the India-EU trade deal.
What reasons did the EU give for the export ban?
The EU cited concerns that metal waste may contain persistent and toxic heavy metals, requiring stricter controls.

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