PVC producers do not want to change import tariffs

January 29, 2022:

Domestic producers of polyvinyl chloride (PVC) are afraid that tariff cuts could hinder the planned addition of domestic capacity, so the government will leave import tariffs on materials within budget. I hope to keep it.

PVC is made of plastic and is used in several industries such as farms, buildings, construction and healthcare. Obligations to import PVC have doubled in the last few years to 10%, facilitating new investment commitments by domestic players.

“Additional capacity is planned in response to increasing obligations, and if the government suspends it, it will endanger new capacity,” said the Chemical and Petrochemical Manufacturers Association (CPMA). Kamal Nanavaty, Chairman of the Company, said. Several PVC manufacturers including Reliance Industries, Finorex Industries, Chemplast.

India produces about 1.5 million tonnes of PVC annually, which helps meet less than half of the country’s total consumption of about 3.2 million tonnes, according to Nanabati. Reliance Industries Limited (RIL) produces about 45% of the country’s total PVC.

According to Nanabati, RIL will add a new production capacity of 1.5 million tonnes per year, and the Adani Group will build a production facility of 2 million tonnes per year. This planned total capacity of 3.5 million tonnes will more than triple the capacity of India in a few years.

“In India, the loss of duty protection will be at a disadvantage to foreign players, as industry will have to bear higher cost of capital and infrastructure,” Nanabati said.

With an annual supply of 500,000 tonnes, Japan is currently the largest PVC exporter to India. According to Nanabati, Japan’s export surge was underpinned by a free trade agreement between India and Japan, which gradually reduced tariffs to zero. ET HealthWorld