Centre asks court to reject challenge to copper import curbs

Time of India

26-06-2025

The Centre has defended its quality control measures on copper cathode imports, refuting claims of monopolistic practices. Ten foreign suppliers have already obtained certification, addressing concerns about supply shortages. The government has asserted that the regulations aim to protect consumer interests and ensure product reliability, not to restrict competition.
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The Indian government has rejected a claim by trade bodies that its move to impose quality control curbs on copper cathode imports would lead to a monopoly, as 10 foreign suppliers have obtained certification, a legal document showed on Thursday.India, the world's second-largest importer of refined copper , is defending its quality control measures in court against accusations that it would lead to supply shortages and create a monopoly of three domestic suppliers.In an over 160-page reply to the petitions by the Bombay Metal Exchange (BME) and the Bombay Non-Ferrous Metals Association, the government says their concerns on supply constraints are "misconceived and unfounded"."The implementation of the QCO has not led to any monopolistic practices of price distortion," said India's Ministry of Mines , as it asked for the rejection of the trade associations' legal challenge.The Bombay Metal Exchange, the Bombay Non-Ferrous Metals Association and the federal Ministry of Mines did not immediately respond to Reuters' emails seeking comments.The reply seen by Reuters adds that the quality control order was a regulatory measure aimed to safeguard consumer interests and applies equally to all entities whether they are domestic or foreign."Foreign suppliers are not being barred... The regulation aims to enhance product reliability and safety, not restrict competition," it added.Copper is one of 30 critical minerals identified by India in 2023 and demand within the country is expected to double by 2030. The domestic supply is dominated by Hindalco Industries Vedanta , Adani and the state-owned Hindustan Copper Imports in the country have surged since 2018 after the closure of Vedanta's domestic Sterlite Copper smelter.Japan accounts for about two-thirds of India's refined copper imports, followed by Tanzania and Mozambique.Among the 10 foreign suppliers who have secured the certification under the new rules, seven are from Japan, two from Malaysia and one from Austria, the Indian government's reply said.Bombay Metal Exchange President Sandeep Jain told Reuters last month that the trade body was "compelled to seek judicial intervention" as the government did not defer the implementation of the quality control orders, and the measure had led to supply shortages.