Import Duty on Petrochemical Raw Materials Waived

03-Apr-2026 12:49 PM

New Delhi. With the objective of alleviating the difficulties faced by domestic industries, the Central Government has suspended import duties on 40 petrochemical-related products (raw materials) until June 30, 2026.

An import duty ranging from 7.5% to 10% was previously applicable to these products, which has now been withdrawn with immediate effect. This move is expected to lead to a reduction in prices and an increase in the availability of plastic sacks—particularly those used for packaging wheat.

An increased supply of plastic poly-packs will help alleviate the shortage of sacks available for wheat packaging. It is noteworthy that, until now, the majority of wheat packaging was carried out using sacks (gunny bags) made of jute; however, the situation is somewhat different this time around.

Due to the cessation of raw jute imports from Bangladesh, India currently lacks an adequate stock of jute gunny bags, and their prices have consequently doubled. In light of this, several states have either cancelled existing tenders for the procurement of jute sacks or have decided to issue fresh tenders.

The surge in the prices of crude mineral oil and petrochemicals has also driven up the cost of plastic sacks; consequently, if these sacks are utilized on a large scale for wheat packaging, their prices could rise even further.

However, the waiver (suspension) of import duties on raw materials used in the production of plastic goods will reduce manufacturing costs, thereby potentially mitigating the extent of any future price hikes. Meanwhile, the government procurement season for wheat has formally commenced across almost all of the country's major wheat-producing states.