Page 64 - Plastics News August 2026

IN THE NEWS
Commerce Ministry Defends PVC Import Price Floor
he Commerce and Industry Ministry has
defended its decision to impose a mini-
Tmum import price (MIP) of $0.766 per
kg on Suspension-grade PVC (S-PVC) resin, ar-
guing that the measure is aimed at addressing
concerns over low-priced imports and reducing
excessive dependence on overseas supplies.
The Commerce and Industry Ministry said that
the minimum import price (MIP) of $0.766 per kg
on PVC Suspension Resin (S-PVC) used to man-
ufacture housing and irrigation pipes imposed
on June 24 is aimed at reducing India’s import
dependency on the item over time.
The ministry said that the domestic capacity of
about 1,615 KT per annum is lower than the de-
mand of about 4,139 KT per annum, adding that
MIP is not an import ban or an import quota and
that imports at fair prices remain open.
“Imports used for export production under Ex-
port Oriented Unit, Special Economic Zones and
68 PLASTICS NEWS
the Advance Authorisation Scheme are exempt
from the measure. Further, the Department of
Chemicals and Petrochemicals (DCPC) has in-
formed that the PVC Homopolymer Quality
Control Order, 2024 was revoked on Novem-
ber 12, 2025 to ease supply constraints. In ad-
dition, about 3,000 KT of new domestic capac-
ity is expected during 2026-27. These steps are
expected to improve availability and reduce the
present dependence on imports over time,” the
ministry said.
“The MIP is applicable for six months, is based
on the assessed cost of production with a rea-
sonable margin, and was introduced after con-
sultation with stakeholders. The measure only
prevents imports below the prescribed fair-price
level, while allowing normal imports at or above
that level. It also contains exemptions for export
production,” the ministry said.
The government maintains that the intervention
is necessary to provide a more level playing field
for domestic PVC producers. However, down-
stream plastics processors have raised concerns
that higher resin prices could increase produc-
tion costs for pipes, cables, profiles and other
PVC products. Recent industry reports indicate
that smaller manufacturers fear the measure
could put pressure on project costs and margins.
The policy includes exemptions for 100% export-
oriented units, SEZ units and imports under the
Advance Authorisation Scheme, provided the
imported material is not sold in the domestic tar-
iff area
August 2026