1 month ago
India Imposes MIP on S-PVC Resin
The Indian government has set a minimum price for importing a special type of plastic called S-PVC Resin.
This plastic is used to make many things like pipes, fittings, and cables.
The new rule says that if anyone wants to import this plastic for less than $0.766 per kg, they need a special permit.
This will make the plastic more expensive in India.
Some companies that make this plastic in India will be happy because they can charge more.
But other companies that use this plastic to make their products will have to pay more, which might make their products more expensive for us.
India imposes a minimum import price of US$0.766 per kg on S-PVC Resin.
Imports below this price require a DGFT import licence for six months.
This will increase the cost of pipes, fittings, cables, and other plastic products.
India's annual import bill for S-PVC Resin is expected to increase by about US$200 million.
Domestic resin manufacturers will benefit from stronger pricing power and improved margins.
- Who
- Directorate General of Foreign Trade (DGFT)
- What
- Imposed a minimum import price (MIP) on Suspension Grade Polyvinyl Chloride (S-PVC) Resin
- Where
- India
- When
- Effective immediately for six months
- Why
- To restrict imports and support domestic manufacturers
Domestic Resin Manufacturers
Downstream Manufacturers
Pricing Power
Domestic Resin Manufacturers
Domestic resin manufacturers will benefit from stronger pricing power and improved margins due to higher import costs.
Downstream Manufacturers
Downstream manufacturers will face higher raw material costs, leading to lower margins or increased prices for customers.
Key facts
- Minimum Import Price (MIP)
- US$0.766 per kg
- Annual Import Bill Increase
- About US$200 million
- Total Customs Duty (excluding IGST)
- 8.25%
- Minimum Landed Cost after IGST
- About US$0.87 per kg
- Annual S-PVC Resin Consumption
- 4.5 MMT
- Domestic Production
- 1.7 MMT
- Imports
- 3.0 MMT
Sources
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