By Neha Arora

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.

In a response late on Wednesday, India's federal Ministry of Commerce and Industry said it remains engaged with the EU side on the matter.

• 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, 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.

• "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.

• 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.

(Reporting by Neha Arora; Editing by Louise Heavens and Muralikumar Anantharaman)

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