India Schedules Crucial Stakeholder Consultation on PVC Minimum Import Price

India’s Directorate General of Foreign Trade (DGFT) will convene a stakeholder consultation on March 16 to evaluate the possible implementation of a Minimum Import Price (MIP) for Polyvinyl Chloride (PVC) resin. The move follows strong representations from the domestic petrochemical industry, which has reported significant financial pressure due to rising volumes of low-cost PVC imports, particularly from China.

The consultation forms part of a broader trade defense strategy by the Indian government. Earlier, on March 3, 2026, authorities initiated a countervailing duty (CVD) investigation into PVC imports from China. However, the proposed MIP is viewed as a faster policy tool that could immediately establish a price floor and prevent the dumping of subsidized resin in the domestic market.

According to industry estimates, imported PVC has captured nearly 40% of the Indian market, raising concerns among local producers. Companies such as Reliance Industries, DCM Shriram, and Chemplast Cuddalore have argued that introducing a price floor is necessary to support domestic manufacturing and safeguard local production capacity.

However, the proposal has sparked concerns among downstream converters, many of which are small and medium-sized enterprises (MSMEs). These manufacturers produce essential products such as irrigation pipes and electrical conduits and warn that a Minimum Import Price could disconnect Indian PVC prices from global market trends.

Recent price increases by major domestic producers have already indicated a tightening supply environment. With Brent crude trading near $90 per barrel, downstream industries argue that an additional regulatory price floor could further raise costs for key infrastructure initiatives, including India’s Jal Jeevan Mission and affordable housing programs.

The outcome of the March 16 consultation is expected to play a crucial role in determining whether the government prioritizes the protection of domestic resin producers or the cost competitiveness of the wider plastics manufacturing sector. A final decision is anticipated shortly after the consultation and could significantly reshape India’s PVC trade policy for the upcoming fiscal year.

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