The plastics industry is raising concerns about the gap between announced duty exemptions and their real-world impact on manufacturing costs. While the government’s customs duty waiver on 40 petrochemicals was welcomed, processors and converters report that raw material prices have not fallen proportionately, undermining the anticipated cost relief.
Industry associations point to supply chain inefficiencies, import logistics costs, and distributor margins that absorb much of the duty benefit before it reaches the factory floor. Small and medium enterprises, which lack the purchasing power of large corporations, are particularly affected.
AIPMA and other bodies have called on the government to implement a transparent price monitoring mechanism and consider direct procurement support schemes to ensure duty exemptions translate into tangible relief for the broader plastic manufacturing ecosystem.
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