Customs duty on 40 petrochemical products cut to nil amid West Asia crisis

The goods covered it include critical industrial inputs such as anhydrous ammonia, toluene, styrene, methanol, acetic acid, and monoethylene glycol (MEG); Chlorinated compounds; Engineering plastics and specialty resins.

Ammonium nitrate is covered and will also receive a simultaneous exemption from the Agriculture Infrastructure and Development Cess.

The blanket zero-duty window on such a broad basket of chemicals and polymers signals the government’s intent to provide short-term cost relief to downstream industries — including packaging, automotive, textiles, construction, and agriculture — that depend heavily on these raw materials. Many of these inputs are not produced domestically in sufficient quantities, making import costs a significant burden on manufacturers.

The simultaneous AIDC exemption on ammonium nitrate — a key input in fertiliser production — underscores the government’s sensitivity to agricultural input costs ahead of the kharif sowing season.

Sanjay Mangal, member, Central Board of Indirect Taxes, said, “The measures have been taken for continued availability of critical petrochemical inputs for domestic industry, reduce cost pressure on downstream sectors and ensure supply stability.”