The Indian government on Friday imposed a six-month restriction on imports of low-priced suspension-grade PVC resin, setting a minimum import price of USD 0.766 per kilogram (CIF), according to a notification from the Directorate General of Foreign Trade (DGFT). The policy change, which took effect immediately on July 24, 2026, reclassifies Suspension Grade PVC Resin (S-PVC) under ITC (HS) Code 39041020 from "Free" to "Restricted." Imports with a CIF value greater than USD 0.766 per kg remain free, while those at or below the threshold are restricted for six months.
Policy Details and Minimum Import Price
The DGFT notification specifies that imports of S-PVC with a CIF value above USD 0.766 per kilogram are freely permitted during the six-month period. Conversely, shipments valued at USD 0.766 per kg or below are restricted. The measure is intended to curb the influx of low-priced imports that have been undercutting domestic prices.
Exemptions for Export-Oriented Units
Certain categories of imports are exempted from the minimum import price condition. According to the notification, the minimum import price "will not be applicable for import by 100% Export Orientated Units (EOUs), units in the SEZ and under the Advance Authorisation Scheme." However, these exemptions are subject to the condition that the imported inputs are not sold into the Domestic Tariff Area (DTA). This carve-out ensures that export-focused manufacturers can continue to access competitive raw materials without disruption.
Background: Anti-Dumping Investigation
The import restriction follows an anti-dumping investigation by the Directorate General of Trade Remedies (DGTR). The investigation was triggered by a complaint from domestic producers Chemplast Cuddalore Private Limited, DCM Shriram Limited, and DCW Limited, who alleged dumping of suspension-grade PVC resin from seven countries. In its final findings issued in August 2025, the DGTR concluded that dumped imports had caused material injury to the domestic industry through price undercutting, price depression, and rising import penetration. The DGTR recommended the imposition of anti-dumping duties for five years. However, the DGFT notification does not explicitly link the six-month import restriction to the DGTR investigation or cite it as the reason for the policy change.
Implications for the PVC Market
| Aspect | Details |
|---|---|
| Commodity | Suspension Grade PVC Resin (S-PVC) |
| HS Code | 39041020 |
| Minimum Import Price | USD 0.766 per kg (CIF) |
| Duration | Six months from July 24, 2026 |
| Affected Imports | Those with CIF value ≤ USD 0.766/kg |
| Exempted Entities | EOUs, SEZs, Advance Authorisation units (subject to no DTA sale) |
| Background | DGTR anti-dumping investigation (final findings Aug 2025) |
| Complainants | Chemplast Cuddalore, DCM Shriram, DCW Limited |
For commodity traders and procurement teams, the policy introduces a clear floor price for imported S-PVC. Domestic producers stand to benefit from reduced price competition, while importers of low-cost material face restricted access unless they qualify for exemptions. The six-month window aligns with the timeline of the earlier DGTR recommendation for anti-dumping duties, suggesting possible further trade measures. Key data releases to watch include monthly import statistics from the DGFT and any follow-up notifications on anti-dumping duties.
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