India Exempts Key Petrochemicals from Customs Duty to Ease Supply Crunch

The measure, said the ministry in a statement, has been taken as a temporary and targeted relief in order to ensure continued availability of critical petrochemical inputs for domestic industry, reduce cost pressures on downstream sectors, and safeguard supply stability in the country.

"The exemption is expected to benefit a wide range of sectors dependent on petrochemical feedstock and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments," the official statement said.

This will also provide relief to consumers of final products, according to the government.

Some of the petrochemical products in the list are Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Methanol (methyl alcohol), Isopropyl alcohol, Monoethylene Glycol (MEG), and Phenol, etc.

Others in the list are Acetic acid, Vinyl acetate monomer, Purified Terephthalic Acid (PTA), Ammonium nitrate, polymers of ethylene (including Ethylene-vinyl acetate), epoxy resins, formaldehyde, Urea formaldehyde, Melamine formaldehyde and Phenol formaldehyde, etc.

In view of the evolving geopolitical situation due to the Iran war and its implications for maritime trade, the Centre last month decided to restore the rates and value caps under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for all eligible export products with effect from March 23, according to the Ministry of Commerce and Industry.

This step is intended to provide timely support to Indian exporters facing elevated freight costs and war-related trade risks arising from disruptions in the Gulf and the wider West Asia maritime corridor.

Meanwhile, India is well stocked with crude oil, petrol, diesel, ATF, LPG, and LNG, with sufficient inventories to handle short-term disruptions, while continuing to source energy from multiple global suppliers.

- IANS