New Delhi, Industries spanning consumer goods to cement, which are facing challenges from rising production and packaging costs amid geopolitical tensions in West Asia, expect the government’s move to reduce customs duty on a range of petrochemical products to provide much-needed relief to manufacturers and downstream sectors.
Petrochemicals are critical raw materials for plastics, and a lower cost could translate into cheaper packaging materials for sectors such as FMCG, retail, and consumer goods companies.
Besides, this is also going to help sectors, such as cement, among others, as reduced costs in plastics, resins, and synthetic materials ripple across supply chains.
JK Lakshmi Cement President & Director Arun Shukla said the government’s move to exempt Basic Customs Duty on a wide range of petrochemical products till June 30, 2026, comes as a relief for the industry.
“At a time when global prices and supply chains remain unpredictable, this step should improve stability in input costs,” he said.
For the cement sector, while these materials are not part of the core manufacturing process, polymers such as polypropylene and polyethylene are used in packaging and certain value-added applications, he said.
“Any easing in their prices can help improve efficiencies in cement dispatch. The move reflects a proactive policy approach to cushion the industry from external cost pressures while sustaining momentum in construction and infrastructure activity,” said Shukla.
The government on Thursday 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.
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.
Parle Products Vice President Mayank Shah said the industry is still waiting for the impact of the exemption of import of petrochemical products from customs duty.
“There are precisely three costs which have been impacted. One was the conversion, the production cost, the second was packaging, and the third was price. All three were affected,” he said.
If input prices decline as expected, it will provide significant relief to companies, allowing them to maintain current price levels without resorting to hikes, he said.
