India, the world's second-largest importer of refined copper, requires approximately 555,000 tons annually, with New Delhi importing about 500,000 tons each year to bridge the supply gap. Copper imports have boosted since the closure of Vedanta's domestic Sterlite Copper smelter in 2018. Last December, the government imposed quality control measures on copper cathode imports, asking either foreign or domestic suppliers to obtain certification from the Indian government.

The Bombay Metal Exchange and the Bombay Non-Ferrous Metals Association have filed a petition with the Bombay High Court, arguing that the quality control measures might result in a monopoly controlled by three domestic suppliers, but their names are not mentioned. President Sandeep Jain said this non-tariff barrier has inevitably led to supply shortages, adding that the copper imports from April to February are 100,000 metric tons shortage compared to the same period of time.

On the other hand, one source, familiar with the Indian government's thinking, said what trade bodies claimed about copper shortage is not correct. The only evidence the trade bodies have is the reduced imports in December and January, but it's because large quantities of copper were imported in October and November. Another source confirmed that the government intends to stand by its stance.