India Clarifies PVC MIP Is Meant to Reduce Import Dependence, Not Restrict Imports

India's Commerce and Industry Ministry has clarified that the recently introduced Minimum Import Price (MIP) on PVC suspension resin (S-PVC) is aimed at gradually reducing the country's dependence on imports while supporting domestic manufacturing. The ministry emphasized that the measure is not an import ban or an import quota, and imports at fair prices will continue without restrictions.

The clarification comes after concerns were raised that the MIP could lead to higher PVC pipe prices, particularly for infrastructure and irrigation projects.

Domestic Demand Continues to Outpace Supply

According to the ministry, India's annual production capacity for PVC suspension resin is about 1.615 million metric tonnes, whereas domestic demand is around 4.139 million metric tonnes per year. This large gap means imports will continue to play an essential role in meeting the country's requirements.

The government stated that the MIP has been introduced to discourage imports priced below fair market levels rather than to limit the availability of imported material.

MIP Based on Production Cost Assessment

The ministry said the MIP of $0.766 per kg, announced on July 24 for a period of six months, was determined using the assessed cost of production along with a reasonable profit margin after consultations with industry stakeholders.

Officials clarified that the policy only restricts imports priced below the prescribed fair-price level, while shipments priced at or above the MIP will continue to be allowed.

Export-Focused Imports Exempt

The ministry also confirmed that imports meant for export production under Export Oriented Units (EOUs), Special Economic Zones (SEZs), and the Advance Authorisation Scheme are exempt from the MIP.

Government Cites Earlier DGTR Findings

The ministry referred to the findings of the Directorate General of Trade Remedies (DGTR), which assessed that import prices in the $0.65–0.75 per kg range were at or below the production cost of even the most efficient domestic manufacturers.

It also noted that the DGTR had identified dumping and, in August 2025, recommended anti-dumping duties ranging from $22 to $284 per metric ton, depending on the dumping margin.

The government reiterated that the MIP is intended to encourage fair trade practices and strengthen domestic manufacturing while ensuring that imports required to meet India's demand continue to enter the country at fair prices.

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