The Indian Primary Copper Producers Association (IPCPA) has raised concerns over rising copper rod imports from the UAE under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), warning that the trend threatens domestic investments in copper refining.
Since 1996, Indian producers – Hindustan Copper Ltd, Hindalco Industries, Vedanta Ltd, and Kutch Copper Ltd (Adani Group) – have built a domestic refined copper capacity of 1.25 million tonne, against a projected demand of 0.85 million tonne for FY25. The industry had plans to expand capacity further in the coming decade.
However, IPCPA in a letter to the commerce ministry said CEPA poses “a significant obstacle” to these plans, as the UAE, despite having no copper mining, smelting, or refining infrastructure, is exporting copper rods to India with minimal value addition. The UAE firms merely convert imported copper cathodes into rods, a process that alters the tariff classification but adds negligible real value, …
