The central government has renounced customs duty on a huge range of critical chemicals and solvents until June 30, 2026, in view of the continuing warfare in the Middle East and the consequent disruptions in global supply chains.
The exemptions, effective from April 2, apply to imports of chemicals like methanol, styrene, acetic acid, isopropyl alcohol and polyvinyl chloride, according to a government order.
The government also waived ammonium nitrate from the Agriculture Infrastructure and Development Cess for the same period.
The Ministry of Finance stated that the measure has been taken as a temporary and focused relief to secure the ongoing availability of critical petrochemical inputs for the domestic industry. It observed that the step will assist reduce cost pressures on downstream sectors and safeguard supply stability in the country. Traders have report considerable increase in price of most chemicals within the past 4-weeks.
The chemical and downstream sectors had been looking at an prolonged spell of margin pressure as input prices are unlikely to subside till global petrochemicals supply chain recovers, in all possibly only months after hostilities end in the Persian Gulf.
