Duty relief for key petrochemicals extended

The PM Modi-led Central government announced on Tuesday that it has extended the import duty exemption on select critical petrochemical products by another 15 days, pushing the deadline to July 15, according to an official notification.It covers around 40 key petrochemical products, including Anhydrous Ammonia, Methanol, Toluene, Styrene, Vinyl Chloride Monomer, Dichloromethane, Polybutadiene, Styrene Butadiene and Unsaturated Polyester Resins.These products are widely used across sectors such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing industries that rely on imported petrochemical feedstocks and intermediates.The exemption, which was scheduled to end on June 30, has been prolonged as the government continues to monitor developments in West Asia and their impact on global supply chains and freight movement.The duty waiver was first introduced on April 2 as a temporary measure to shield domestic industries from disruptions caused by tensions in the region.Before the latest notification, government officials had indicated that a decision on extending the exemption would depend on an assessment of the evolving situation in West Asia, particularly cargo movement through the Strait of Hormuz, as well as its impact on customs revenue.The conflict in West Asia and disruptions to shipping through the strategic Strait of Hormuz have driven up the cost of crude oil, fertilisers and other imports, while also affecting the availability of critical industrial raw materials.The Centre had described the customs duty relief as a targeted and temporary intervention to cushion domestic manufacturers against these supply-side pressures.The Centre has set a customs revenue collection target of Rs 2.71 trillion for the current financial year, higher than Rs 2.64 trillion collected in FY26. ...