War fallout: Govt exempts ammonium nitrate, key petrochemicals from duty till June 30
The central government on Thursday announced sweeping, time-bound duty exemptions on a range of critical petrochemical products and fertilizer inputs, citing disruptions in global supply chains due to the ongoing war in the Middle East.
Under the decision, exemptions will remain in force till June 30, with effect from April 2.
The government has waived customs duty on ammonium nitrate and also exempted it from the Agriculture Infrastructure and Development Cess for the same period.
In addition, customs duty has been reduced to zero on imports of around 40 petrochemical raw materials and related products, aimed at easing input costs for domestic industries.
The list of exempted items includes key feedstocks such as methanol, styrene, acetic acid and polyvinyl chloride (PVC), along with several other widely used industrial chemicals.
Detailed list of key products exempted:
- Anhydrous ammonia
- Toluene
- Styrene
- Dichloromethane (methylene chloride)
- Vinyl chloride monomer
- Methanol (methyl alcohol)
- Isopropyl alcohol
- Monoethylene Glycol (MEG)
- Phenol
- Acetic acid
- Vinyl acetate monomer
The move comes amid heightened concerns over supply bottlenecks and rising costs triggered by geopolitical tensions.
By cutting duties and easing import restrictions, the Centre aims to ensure uninterrupted availability of critical inputs, stabilise prices and shield the fertilizer and petrochemical sectors from global volatility.