As energy supply disruptions due to the ongoing Middle East conflict stretch into a second month, the government has moved to cushion the impact on domestic industries by granting a full customs duty exemption on select critical petrochemical products, providing much-needed short-term relief. The decision, which will be applicable until June 30, will address supply chain challenges and ensure that essential petrochemical inputs remain available for industrial use across the country.“This measure 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 statement read.The government described the move as a targeted and time-bound measure, aimed towards at easing cost pressures faced by downstream sectors while maintaining stability in supplies. The exemption is expected to support industries that rely heavily on petrochemical feedstock and intermediates.Sectors likely to gain from the decision include plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, along with other manufacturing segments that depend on such inputs for production.The relief is also expected to extend to end consumers, as lower input costs may help reduce the burden on final product prices.Here’s a list of products set to benefit from the exemption:
- Anhydrous ammonia
- Toluene
- Styrene
- Dichloromethane (methylene chloride)
- Vinyl chloride monomer
- Methanol (methyl alcohol)
- Isopropyl alcohol
- Monoethylene Glycol (MEG)
- Phenol
- Acetic acid
- Vinyl acetate monomer
- Purified Terephthalic Acid (PTA)
- Ethylenediamine
- Di Ethanolamine and Mono Ethanolamine
- Toluene di-isocyanate
- Ammonium nitrate
- Linear alkylbenzenes
- Polymers of ethylene (including Ethylene-vinyl acetate)
- Polypropylene
- Polystyrene
- Styrene-acrylonitrile (SAN)
- Acrylonitrile-butadiene-styrene (ABS)
- Polyvinyl Chloride (PVC)
- Polytetrafluoroethylene
- Polyvinyl acetate
- Polyvinyl alcohol
- Poly (methyl methacrylate)
- Polyoxymethylene (POM- acetal)
- Polyols
- Polyether Ether Ketone (PEEK)
- Epoxy resins
- Polycarbonates
- Alkyd resins
- Poly ethylene terephthalate (PET) Chips
- Unsaturated polyester resins
- Poly butylene terepthalate
- Formaldehyde, Urea formaldehyde, Melamine formaldehyde, Phenol formaldehyde
- Polyurethanes
- Polyphenylene sulphide (PPS)
- Poly butadiene, Styrene butadiene
In a bid to ease the impact of soaring crude prices on consumers and oil companies, the Centre earlier reduced excise duty. For Indian refiners, crude costs have surged 62% this month compared to February, and the duty cut is expected to result in a revenue shortfall of Rs 1.3 lakh crore for the exchequer.At the same time, Union minister of chemicals and fertilizers JP Nadda held discussions with state Agriculture Ministers and Chief Ministers regarding the availability of urea and DAP, assuring full support. Sources added that Union minister of agriculture and farmers Welfare Shivraj Singh Chouhan is also meeting Union minister JP Nadda in Parliament.