Govt grants customs duty waiver on key petrochemicals

Ziraat Times Team Report

New Delhi, April 2: The Government of India has announced a full customs duty exemption on a range of critical petrochemical products until June 30, 2026, as a targeted relief measure to counter supply chain disruptions arising from the ongoing situation in West Asia.

The decision, announced by the Ministry of Finance, aims to ensure uninterrupted availability of essential industrial inputs, ease cost pressures on manufacturers, and maintain supply stability across sectors.

Relief for key industries and consumers
Officials said the exemption will benefit industries heavily dependent on petrochemical feedstock, including plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive components. The move is also expected to provide indirect relief to consumers by stabilising prices of finished goods.

Key petrochemicals covered with common uses
The exemption covers a wide range of chemicals and polymers. Some key products and their commonly known uses include:

• Anhydrous ammonia – widely used in fertilisers

• Methanol (methyl alcohol) – industrial solvent and fuel additive

• Isopropyl alcohol (rubbing alcohol) – sanitisers and disinfectants

• Acetic acid (vinegar acid) – food processing and chemicals

• Ammonium nitrate – fertilisers and explosives

• Toluene – paint thinners and adhesives

• Styrene – plastics like polystyrene (thermocol)

• Vinyl chloride monomer – raw material for PVC pipes

• Dichloromethane (methylene chloride) – solvent in pharma and paint removers

• Monoethylene Glycol (MEG) – polyester fibres and PET bottles

• Purified Terephthalic Acid (PTA) – polyester textiles

• Phenol – resins, plastics, disinfectants

Major polymers and plastics included
The list also includes widely used industrial plastics:

• Polyethylene (PE) – plastic bags and packaging films

• Polypropylene (PP) – containers and auto parts

• Polystyrene (PS) – packaging foam and disposable cups

• Polyvinyl Chloride (PVC) – pipes, cables, flooring

• Polyethylene Terephthalate (PET) – water and beverage bottles

• Acrylonitrile Butadiene Styrene (ABS) – appliances and helmets

• Polycarbonate – lenses, electronics, safety gear

• Epoxy resins – coatings and adhesives

• Polyurethanes – foam and insulation

• Synthetic rubbers – tyres and footwear

Strategic move amid global uncertainty
The government said the temporary exemption is designed to support domestic manufacturing and prevent supply bottlenecks amid volatile global markets.

Officials added that the move, taken after consultations with industry stakeholders, is expected to strengthen supply chains, maintain production continuity, and protect export competitiveness during ongoing geopolitical uncertainty.