The Material Recycling Association of India (MRAI), which represents recyclers including small and mid-sized firms, has sought government intervention over a European Union proposal to restrict metal waste exports to India from May 2027. The association raised its concerns in a letter to the Commerce and Industry Ministry, according to the document reviewed by Reuters.

The European Commission proposed on September 18 excluding India from the list of countries eligible to receive EU metal waste under new rules. The Commission cited concerns about the possible presence of persistent and toxic heavy metals in such waste. The Commerce and Industry Ministry said it remains engaged with the EU on the matter.

India sources about a quarter of its metal scrap imports from the EU, based on industry estimates. During FY26, the bloc accounted for about 20 per cent of India’s aluminium scrap imports, 22 per cent of copper and copper alloy scrap, 20 per cent of lead scrap and 40 per cent of zinc scrap, according to MRAI data.

MRAI said disruption to these established supply chains could affect Indian recyclers, particularly micro, small and medium enterprises, by reducing access to raw materials and increasing their costs. The association also said tighter supplies could increase India’s dependence on virgin metal resources and affect the competitiveness of recycling businesses.

The association said India has an extensive regulatory framework governing metal recycling and processing facilities. It characterised the EU proposal as resource protectionism and said scrap had become strategically important to Europe’s metals industry. MRAI has urged the government to seek zero-duty treatment for scrap imports under the proposed India-EU trade agreement.

The eventual impact on Indian recyclers will depend on the final EU rules, their implementation and the availability of alternative supply sources. Reduced access to EU scrap could influence the availability and cost of secondary raw materials used by recycling and manufacturing companies.