India has raised the import duty on a range of major polymers, namely polypropylene, polyethylene and polyvinyl chloride, from 5% to 7.5% effective Thursday, a source from Reliance Industries said.
"This is a logical move because it gives a spread between feedstock import duty and the finished products," said an Indian trader at the sidelines of APIC in Taipei, Taiwan. "Petrochemical producers will be at a disadvantage if the duty on feedstock and finished products is the same [at 5%]."
Back in October 2012, the Federation Chambers of Commerce and Industry said in its pre-budget memorandum 2013-14: "Import duty on polymers like PE, PP, PVC and PS may be increased from 5% to 7.5% so as to provide a reasonable duty spread and make local investment viable. This will also bring [the] Indian duty structure closer to developed economies."