<p>New Delhi/Bengaluru: The Centre on Thursday announced a full customs duty exemption on selected petrochemical products till June 30, in order to cushion the industry impacted by the disruption in global supply chain amid the West Asia conflict.</p>.<p>The exemption is expected to benefit a wide range of sectors dependent on petrochemicals, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments, the finance ministry said, adding that the move will also give relief to consumers of final products.</p>.<p>“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 ministry said in a statement.</p>.<p>The department of revenue, ministry of finance, has issued a notification in this regard dated April 1. </p>.<p>The list of 40 products exempted from import duties includes anhydrous ammonia, toluene, styrene, dichloromethane (methylene chloride), vinyl chloride monomer, methanol (methyl alcohol), isopropyl alcohol, monoethylene glycol (MEG), phenol, acetic acid, and ammonium nitrate among others.</p>.Govt to review windfall tax imposed on export of diesel and ATF on fortnightly basis: CBIC chief.<p>“The waiver of duties on petrochemical feedstocks is a key positive for sectors such as paints, chemicals, packaging and select consumer industries, where input costs are closely linked to crude derivatives. This provides a meaningful margin cushion for downstream players, partially offsetting broader cost pressures,” Siddhartha Khemka, Head of Research, Motilal Oswal Financial Services told DH.</p>.<p>The exemption from import duties will help prevent shortages of these inputs, reduce costs for manufacturers of downstream petrochemical products, stabilise prices for end users, and improve the competitiveness of exporters, experts said.</p>.<p>“It will take several weeks for the global oil supply and trade scenario to normalise after the conflict ends. A return to normalcy for global gas supply may take longer than for the oil market, considering operational challenges. That will keep prices in check during the first quarter of fiscal 2027,” Sehul Bhatt, Director, Crisil Intelligence, said.</p>.<p>A separate government notification has also removed the Agriculture Infrastructure and Development Cess on ammonium nitrate. The exemptions take effect from April 2 and will remain in force until June 30.</p>
<p>New Delhi/Bengaluru: The Centre on Thursday announced a full customs duty exemption on selected petrochemical products till June 30, in order to cushion the industry impacted by the disruption in global supply chain amid the West Asia conflict.</p>.<p>The exemption is expected to benefit a wide range of sectors dependent on petrochemicals, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments, the finance ministry said, adding that the move will also give relief to consumers of final products.</p>.<p>“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 ministry said in a statement.</p>.<p>The department of revenue, ministry of finance, has issued a notification in this regard dated April 1. </p>.<p>The list of 40 products exempted from import duties includes anhydrous ammonia, toluene, styrene, dichloromethane (methylene chloride), vinyl chloride monomer, methanol (methyl alcohol), isopropyl alcohol, monoethylene glycol (MEG), phenol, acetic acid, and ammonium nitrate among others.</p>.Govt to review windfall tax imposed on export of diesel and ATF on fortnightly basis: CBIC chief.<p>“The waiver of duties on petrochemical feedstocks is a key positive for sectors such as paints, chemicals, packaging and select consumer industries, where input costs are closely linked to crude derivatives. This provides a meaningful margin cushion for downstream players, partially offsetting broader cost pressures,” Siddhartha Khemka, Head of Research, Motilal Oswal Financial Services told DH.</p>.<p>The exemption from import duties will help prevent shortages of these inputs, reduce costs for manufacturers of downstream petrochemical products, stabilise prices for end users, and improve the competitiveness of exporters, experts said.</p>.<p>“It will take several weeks for the global oil supply and trade scenario to normalise after the conflict ends. A return to normalcy for global gas supply may take longer than for the oil market, considering operational challenges. That will keep prices in check during the first quarter of fiscal 2027,” Sehul Bhatt, Director, Crisil Intelligence, said.</p>.<p>A separate government notification has also removed the Agriculture Infrastructure and Development Cess on ammonium nitrate. The exemptions take effect from April 2 and will remain in force until June 30.</p>
