India Restricts Low-Priced SPVC Imports for Six Months

India has implemented a six-month restriction on the import of low-priced Suspension PVC (SPVC) resin, a move aimed at shielding domestic producers from cheap foreign imports. The Directorate General of Foreign Trade (DGFT) has mandated a minimum import price for SPVC, with imports priced at or below USD 0.766 per kilogram now requiring a license.

This policy change, effective immediately, shifts the import classification of SPVC from 'Free' to 'Restricted'. However, exemptions apply to 100% Export Oriented Units (EOUs), Special Economic Zones (SEZs), and imports under the Advance Authorisation Scheme, provided these imports are not sold domestically.

The decision follows a previous anti-dumping investigation by the Directorate General of Trade Remedies (DGTR), which found that low-priced imports were harming domestic industries through price undercutting and rising import penetration. Despite this, the DGFT's notification does not explicitly link the restriction to the DGTR's findings.

Critics argue that with India importing 64% of its PVC needs, the policy may not significantly reduce imports but could instead raise prices across the PVC value chain. This could benefit domestic producers but increase costs for downstream manufacturers and consumers, potentially raising India's annual PVC import bill by about USD 200 million.