Government exempts Customs Duty for 40 petrochemical products amid West Asia crisis

The Union government on Thursday (April 2, 2026) has provided full Customs Duty exemption to about 40 petrochemical products till June 30 in view of the ongoing conflict in West Asia.

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A notification dated April 1, 2026, listed 40 items, including polypropelene, polystyrene, polyols, poly butadiene, styrene butadiene, and Anhydrous ammonia.

“This measure has been taken as a temporary and targeted relief in order to ensure continued availability of critical petrochemical inputs for domestic industry, reduce cost pressures on downstream sectors, and safeguard supply stability in the country,” said an official press statement.

It will benefit a wide range of sectors dependent on petrochemical feedstock and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments.

RK Vij, president of the Textile Association (India), said Purified Terepthalic Acid (PTA) and Mono Ethylene Glycol (MEG) that are main raw materials for the synthetic textile industry, and the melt saw 43 % jump in price in the last one month because of the war.

The cost of the melt went up from ₹83 a kg to ₹118 a kg. Ships were not coming because of the war. The supplies were arriving from China and the U.S. and the costs were high. So, industries were closing down. “The manmade fibre sector is a growing field and this is a very good move. We can get PTA from the U.S. and China now. Saudi Arabia and Kuwait are the main suppliers for MEG and there will be a shortage of this product,” he added.

Published - April 02, 2026 09:59 am IST

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