Raise import duty on petchem: Trade body SOS to govt
customs duty to protect the domestic industry and jobs. The Petrochemicals and Plastic Committee of the Federation of Indian Chambers of Commerce and Industry (FICCI) has written to Ministry of Chemicals and Fertilizers seeking hike in customs or import duty on polypropylene and polyethylene — vastly used in automobiles, packaging, agriculture, electronics and medical devices as well as in construction — from 7.5 per cent to 12.5 per cent.
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India is short on petrochemicals. Taking into account the capacity additions announced so far, the projected deficit of polypropylene and polyethylene is likely to reach 12 million tonne per annum or USD 12 billion at current price levels by 2030.
While the domestic Indian producers are caught in the cyclical nature of the business, China is scaling up petrochemicals production capacity and fast becoming a leading exporter. India's current major import locations in the Middle East and the US enjoy better profit margins given availability of cheaper feedstock.
«The current imports of USD 101 billion of chemicals and petrochemicals present a huge opportunity for India to decrease our import bills and aim for self-sufficiency,» the association wrote.
Chemicals and petrochemicals constitute the second largest category of imports into India. Low rate of duty on import of polyethylene and polypropylene
