Copper industry flags CEPA threat on rising UAE imports
New Delhi: The Indian Primary Copper Producers Association (IPCPA) has raised alarm over rising imports of copper rods from the UAE under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), cautioning that the trend risks undermining 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 refining capacity of 1.25 million tonnes, against projected demand of 0.85 million tonnes for FY25. The industry had planned further expansions, but IPCPA said CEPA now poses “a significant obstacle.”
Despite lacking copper mining or smelting capacity, UAE firms are exporting copper rods to India with minimal value addition, merely converting imported cathodes into rods. This classification change qualifies for tariff benefits, but according to IPCPA, adds negligible real value.
Imports, modest in FY23 and FY24 due to phased tariff cuts, have spiked sharply since May 2025, when duties dropped from 2 per cent to 1 per cent. They will fall to zero in May 2026. Imports nearly doubled in FY25 to 86.06 kt from 43.45 kt in FY24, while non-advance authorization imports surged 239 per cent to 63.89 kt. In the first four months of FY26 alone, imports reached 42.71 kt — already half of last year’s total.
The association warned of a further surge once duties are eliminated, citing similar patterns under FTAs with ASEAN and Japan. It also criticised the tariff rate quota (TRQ) of 85,000 tonnes for copper rods under CEPA, calling it excessive and ineffective in protecting domestic players.
With Chinese-controlled supply chains dominating copper flows into the UAE and negligible local processing, IPCPA said India risks becoming a dumping ground for minimally processed goods.
The association urged revisions to CEPA’s Product-Specific Rules (PSR), recommending removal of “melt, cast, and rolled,” stricter rules of origin, and a mandatory minimum 40 per cent value addition. It also sought to cap TRQ at 20,000 tonnes per year. “Unless corrective steps are taken, CEPA will erode the competitiveness of India’s copper producers and deter future investments in smelting and refining,” IPCPA warned.
