India Government On Fertilizer Industry: Amidst the global crisis arising out of the ongoing war in the Middle East, the Central Government has given big relief to fertilizer companies. The government has announced exemption in import duty on ammonium nitrate. Besides, import duty on many petrochemical products has also been removed. This discount will be applicable from April 2 to June 30.
Giving relief to the fertilizer and chemical industry, the government has reduced the import duty on many essential raw materials to zero. This decision has been taken at a time when cost pressure on industries is increasing due to war and supply crisis across the world.
Duty abolished on more than 40 chemicals
According to the notification issued by the Finance Ministry, duty on import of about 40 types of petrochemical raw materials and intermediate products has been abolished. It includes many important chemicals like ammonium nitrate, methanol, phenol, PVC and polypropylene. The government says that this step has been taken in the interest of the general public, so that industries can get relief amid the current global crisis.
Fertilizer companies will get big benefits
This decision of the government is especially expected to provide huge relief to fertilizer companies. Chemicals like ammonium nitrate are very important in making fertilizer. This will reduce production costs and also reduce pressure on the supply system. Agricultural infrastructure and development cess on ammonium nitrate has also been removed, which will provide additional benefits to the fertilizer sector. Overall, this step of the government is being considered as a big relief package for industries to reduce costs.
what will be the effect
This decision will make raw materials cheaper for industries, will help in removing supply shortage and will reduce production costs. It will also help in controlling inflation. The chemicals exempted include basic industrial chemicals, such as methanol, acetic acid, phenol, toluene and ammonia, which are used in almost every chemical industry.
Many industries will benefit
The removal of duty on petrochemical and plastic raw materials will benefit the packaging, vehicle, electronic and consumer goods manufacturing sectors. High-end engineering materials are used in space, defense, medical equipment and electronics. Apart from this, many chemicals are also used in making PVC pipes, paint, coating and insulation materials.
These chemicals are also used in the automobile industry to make plastic parts and seat foam. Among the products on which duty has been removed, there are many chemicals which are used in the pharmaceutical industry, which will ease the production of medicines. Removal of duty on ammonium nitrate will ensure availability of fertilizer and help in keeping its prices stable. Along with this, the supply system will remain strong in other important areas also.
