Industry Calls for Suspension of Anti-Dumping Duties on Essential Chemicals Amid Supply Chain Issues
Industry seeks duty relief on key chemicals amid supply disruptions
The Economic TimesImage: The Economic Times
Industry bodies in India are urging the government to temporarily suspend anti-dumping duties on key chemical feedstocks like polyols and acrylic acid to alleviate supply chain disruptions caused by the West Asia crisis. This measure aims to support micro, small, and medium enterprises (MSMEs) facing production challenges due to raw material shortages.
- 01Industry bodies recommend suspending anti-dumping duties on critical chemicals.
- 02The West Asia crisis is disrupting supply chains for essential raw materials.
- 03MSMEs are particularly affected by shortages of chemical feedstocks.
- 04There is a call for reduced import duties on polymer-based raw materials.
- 05Temporary relaxations in quality control orders and licensing are proposed.
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Industry bodies in India are advocating for the temporary suspension of anti-dumping duties on essential chemical feedstocks, including polyols and acrylic acid, due to supply chain disruptions stemming from the ongoing crisis in West Asia. The Confederation of Indian Industry (CII) highlighted that domestic shortages of critical inputs, such as solvents and chemical feedstocks, could lead to production halts for micro, small, and medium enterprises (MSMEs). To mitigate these risks, the CII has recommended a time-bound suspension of both anti-dumping and customs duties. Additionally, another industry group has called for the reduction or removal of import duties on polymer-based raw materials crucial for the packaging and fast-moving consumer goods sectors, such as polypropylene and polyethylene. These materials are vital for food packaging and are experiencing price increases due to their dependence on crude oil derivatives. The CII also suggested temporary relaxations in quality control orders and licensing requirements to address supply bottlenecks.
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The suspension of anti-dumping duties could lower costs for MSMEs, helping them maintain production levels and avoid price hikes for consumers.
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