Import duty exemption on naphtha being sought by Indian polymer industry

18-Mar-09

Department of Chemicals and Petrochemicals under the Ministry of Chemicals and Fertilzers has sought 5% import duty exemption on naphtha in India. The cause for the import duty reduction is that the current duty structure level adds to the cost of production of companies like Haldia Petrochemicals, Reliance Industries and Indian Oil Corporation. In the last fiscal, the country's total polymer imports stood at Rs 5,000 crore. Hence polymer prices in India have been taxed as compared to the falling prices globally. Companies like GAIL (India), which use natural gas as feedstock, get better margins on polymers. An exemption import duty on naphtha has been given to power and fertilizer units.