The Centre’s decision to grant a 100% customs duty exemption on approximately 40 critical petrochemical products, announced on April 6, 2026, has delivered far less relief than the market had anticipated. Despite the duty waiver, raw material prices remain approximately 75% above their February baseline — underscoring the extent to which the surge is geopolitically driven rather than structurally domestic.
AIPMA has described the duty relief as “necessary but insufficient” and is pressing the government for deeper structural interventions, including a reduction in GST on polymers from 18% to 10%, a 20% enhancement in working capital limits for plastic processors, and an emergency credit guarantee scheme for MSME units at risk of closure.
PVC saw a modest correction of ₹10,000 per tonne following the announcement. PET prices declined by approximately ₹5,000 per tonne. However, prices for HDPE and Polypropylene — the two most critical polymers for India’s packaging and automotive sectors — remain entirely unchanged at their record highs.
The question haunting the industry: was this a one-time stabilization or a precursor to longer-term relief? Multiple industry associations were already demanding GST reductions and working capital enhancements before the crisis had only begun.
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