India hikes import tariffs on a range of major polymers

NEW DELHI (Scrap Monster) : All imports of polymers are going to cost 50% higher in India. The government has decided Thursday to hike the import duty on a range of polymers by a 2.5%.

The import tariffs of polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC) and polystyrene (PS) has been raised from 5% to 7.5%. The industry groups in the country have been vociferously demanding for hike in import duties in an attempt to save the local producers who were reported striving hard to face the stiff competition from abroad.

End-users may take it on the chin as the government’s decision may spark off another round of polymer price hike. The list prices were hiked even before the government’s announcement came in. Industry sources anticipate a price hike of at least INR 2 per kilogram, which translates into a rise of $37 per tonne.

India had one of the lowest import duty rates among the world nations. The previous 5% duty was well below the import duties of the neighboring Asian countries which were already in the range of 6% to 7.5%. The industry sources have welcomed the government’s decision to raise the import duty to be in line with other countries.

The imposition of higher duty may curtail the polymer imports into the country. The domestic producers can enjoy lesser competition and better market share for their products at a higher than existing price.