The Directorate General of Foreign Trade (DGFT) last week imposed a minimum import price (MIP) on Suspension Grade Polyvinyl Chloride (S-PVC) Resin.
Imports priced above this level will continue to be freely imported after payment of applicable customs duties.
Imports priced at USD 0.766 per kg or below will now require a DGFT import licence in addition to payment of import duties. The measure will remain in force for six months.
“The move is expected to increase domestic PVC resin prices but is unlikely to reduce India’s heavy dependence on imports,” GTRI Founder Ajay Srivastava said adding it is a key raw material used to make pipes, fittings, cables and many other plastic products.
He added that the notification affects virtually every major foreign supplier of S-PVC resin to India.
India imported USD 1.63 billion worth of the product in 2025-26. China was the largest supplier with exports worth USD 735.4 million, followed by Japan (US 280.4 million), Taiwan (USD 152.7 million), South Korea (USD 123.6 million), Mexico (USD 92.9 million), Indonesia, Thailand, the US, Singapore and Vietnam.According to GTRI, the average import price from these countries ranged between USD 0.65 and USD 0.75 per kg – China (USD 0.65/kg), Japan (USD 0.74/kg), Taiwan (USD 0.72/kg), South Korea (USD 0.70/kg), Mexico (USD 0.71/kg), Indonesia (USD 0.70/kg), Thailand (USD 0.70/kg), the US (USD 0.67/kg), Singapore (USD 0.67/kg) and Vietnam (USD 0.75/kg).
“Since every major supplier ships below the DGFT threshold of USD 0.766 per kg, almost the entire existing import trade now falls within the restricted category unless suppliers increase their declared prices,” he said.
The principal impact of the notification is expected to be higher on domestic PVC resin prices rather than lower imports, Srivastava said.
S-PVC imports attract 7.5 per cent Basic Customs Duty and 0.75 per cent Social Welfare Surcharge, taking total customs duty (excluding IGST) to 8.25 per cent.
“Consequently, the DGFT’s minimum import price translates into a minimum landed cost of about USD 0.87 per kg after 5 per cent IGST,” he said.
He also said that despite the higher import cost, imports are unlikely to decline significantly because India imports about 64 per cent of its S-PVC resin requirement.
Annual PVC resin consumption is around 4.7 million metric tonnes (MMT), of which S-PVC accounts for about 4.5 MMT (96 per cent).
“Domestic production capacity is only 1.7 MMT, led by Reliance Industries, Chemplast Sanmar and DCM Shriram, meeting just 36 per cent of domestic demand. As a result, India imports about 3.0 MMT of S- PVC resin every year, so the DGFT notification is unlikely to significantly reduce imports despite increasing their cost,” he said.