The Indian government has exempted the import of critical petrochemical products from customs duty to ensure supply stability and provide relief to consumers of final products amid the crisis in West Asia.
The duty exemption, which is valid till June 30, will benefit sectors dependent on petrochemical feedstock and intermediates such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing segments.
In a statement, the finance ministry said that in light of the ongoing conflict in West Asia and the consequent disruptions in global supply chains, the government has decided to provide full customs duty exemption on critical petrochemical products till June 30.
‘Temporary relief measure’: Govt
“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,” it said.
This will also provide relief to consumers of 40 final products, it added. The goods on which the customs duty has been exempted include Methanol, Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Poly butadiene, Styrene butadiene, and Unsaturated polyester resins.
Oil led price rise
Disruption in shipping routes amid the West Asia war has raised concerns over imports of fertilizer, crude oil, and natural gas. India is a major importer of fertilizer and petroleum.
Global crude prices have risen by almost 50 percent since the United States and Israel launched military strikes against Iran on February 28, triggering sweeping retaliation from Tehran.
The government had last week slashed excise duty on petrol and diesel by Rs 10 a liter as it looked to shield consumers from the impact of rising global crude prices amid the ongoing war, also imposed an export duty of Rs 21.50 per liter on diesel and Rs 29.50 per liter on Aviation Turbine Fuel (ATF). Excise duty on petrol has been slashed to Rs 3 a liter, while on diesel it is zero currently.