Overview
- The Finance Ministry, in a Thursday notification, set customs duty at zero on about 40 petrochemical feedstocks, intermediates and polymers through June 30, 2026, and also waived the Agriculture Infrastructure and Development Cess on ammonium nitrate.
- The waiver targets supply bottlenecks and higher freight, insurance and crude‑linked costs from the US–Iran conflict that has disrupted shipping lanes such as the Strait of Hormuz.
- Plastics, packaging, textiles, pharmaceuticals, chemicals and auto‑parts makers are expected to get cheaper inputs, which could help keep prices of everyday goods from rising for households.
- Officials estimate a short‑term revenue hit of about Rs 1,800 crore, describing the measure as temporary relief to stabilize availability and blunt second‑round inflation.
- Trade authorities said they are monitoring markets and could adjust import taxes or regulate exports if shortages deepen, building on recent fuel tax changes meant to protect domestic supplies.