Government Extends Zero Duty on Critical Petrochemical Products Till July 15

The Central Government has extended the zero customs duty exemption on nearly 40 critical petrochemical products until July 15, providing temporary relief to industries facing supply uncertainties due to ongoing disruptions in global trade. The exemption, which was scheduled to expire on June 30, has been prolonged by 15 days through a notification issued by the Ministry of Finance. The move is aimed at ensuring uninterrupted availability of essential industrial raw materials and supporting domestic manufacturing.

The duty exemption was first introduced on April 2 as a temporary measure to mitigate the impact of supply chain disruptions caused by geopolitical tensions in West Asia. According to the government, the extension is intended to maintain a steady supply of petrochemical feedstock and intermediates while easing cost pressures on industries that depend heavily on imported raw materials. The latest notification keeps the exemption in force until July 15.

The products covered under the exemption include several key petrochemical inputs such as methanol, anhydrous ammonia, toluene, styrene, dichloromethane (methylene chloride), vinyl chloride monomer, polybutadiene, styrene-butadiene and unsaturated polyester resins. These materials are widely used across manufacturing sectors and are essential for the production of a broad range of industrial and consumer goods.

Also Read: Humayun Kabir Summoned By Police Over Alleged Controversial Remarks

The decision is expected to benefit industries including packaging, plastics, textiles, pharmaceuticals, chemicals and automotive component manufacturing, all of which rely on a stable supply of petrochemical products. By eliminating customs duty on these imports for an extended period, the government aims to reduce production costs, improve the availability of raw materials and minimise the impact of volatile international prices on domestic manufacturers.

The extension comes against the backdrop of continued geopolitical tensions in West Asia, which have disrupted shipping routes and created uncertainty over the global supply of crude oil, natural gas, fertilisers and petrochemical products. As a major importer of energy and industrial raw materials, India has been closely monitoring developments that could affect domestic supply chains and manufacturing activity.

Officials view the extension as a targeted short-term measure designed to shield Indian industries from supply shortages and rising import costs while maintaining the smooth functioning of key manufacturing sectors. The government is expected to continue reviewing global market conditions and may take further policy measures if disruptions persist or if domestic industries require additional support to ensure stable production and supply.

Also Read: Mumbai Under Orange Alert As IMD Predicts Heavy Rainfall This Week