India Cuts Import Duty to Zero on Anhydrous Ammonia and 39 Key Chemical Inputs Till June 2026

02 April 2026, New Delhi: In a calibrated policy move aimed at easing cost pressures across agriculture-linked industries, the Government of India has reduced import duty to zero on 40 key chemical inputs, intermediates and polymer products. The decision was notified by the Ministry of Finance under Notification No. 12/2026–Customs, citing public interest and the need to ensure adequate availability of critical raw materials. 

The exemption will come into force from April 2, 2026, and remain valid until June 30, 2026, offering a time-bound relief window to industries dependent on imports. 

Importantly, the notification does not cover finished agrochemical products. Instead, it focuses on upstream industrial inputs including bulk chemicals, petrochemical intermediates and polymer resins that are widely used in the production of fertilizers, crop protection products, irrigation systems, plastics, packaging materials and agri-infrastructure.

Policy Focus: Strengthening the Input Ecosystem

The list spans a wide range of essential materials such as methanol, phenol, acetic acid, monoethylene glycol (MEG), toluene, styrene, and several engineering and commodity polymers including polypropylene, polyvinyl chloride (PVC), ABS, PET chips and polycarbonates.

These materials form the backbone of multiple manufacturing value chains. In the agriculture sector, they are critical for producing fertilizers, pesticide intermediates, greenhouse films, drip irrigation systems, storage solutions and food packaging materials.

By reducing import duties on these inputs, the government is aiming to lower production costs, improve supply stability and support domestic manufacturing competitiveness.

Additional Push for Fertilizer Availability

In a parallel move, the government has issued Notification No. 13/2026–Customs, under which the Agriculture Infrastructure and Development Cess (AIDC) on ammonium nitrate has also been reduced to zero. 

This is expected to provide further support to fertilizer manufacturers, particularly at a time when demand for nitrogen-based fertilizers is expected to rise with the upcoming cropping cycles.

 

Complete List of Items Under Zero Import Duty

S. No.	Tariff Code	Description of Goods	Duty Rate
1	2814 10 00	Anhydrous ammonia	Nil
2	2902 30 00	Toluene	Nil
3	2902 50 00	Styrene	Nil
4	2903 12 00	Dichloromethane (methylene chloride)	Nil
5	2903 21 00	Vinyl chloride monomer	Nil
6	2905 11 00	Methanol (methyl alcohol)	Nil
7	2905 12 20	Isopropyl alcohol	Nil
8	2905 31 00	Monoethylene glycol (MEG)	Nil
9	2907 11 10	Phenol	Nil
10	2915 21 00	Acetic acid	Nil
11	2915 32 00	Vinyl acetate monomer	Nil
12	2917 36 00	Purified terephthalic acid (PTA)	Nil
13	2921 21 00	Ethylenediamine	Nil
14	2922 11 10 / 2922 11 90 / 2922 12 00	Di ethanolamine and mono ethanolamine	Nil
15	2929 10 20	Toluene di-isocyanate	Nil
16	3102 30 00	Ammonium nitrate	Nil
17	3817 00 11	Linear alkylbenzene	Nil
18	3901	Polymers of ethylene (including EVA)	Nil
19	3902 10 00 / 3902 30 00 / 3902 90 00	Polypropylene	Nil
20	3903 11 00 / 3903 19 10 / 3903 19 90	Polystyrene	Nil
21	3903 20 00	Styrene-acrylonitrile (SAN)	Nil
22	3903 30 00	Acrylonitrile-butadiene-styrene (ABS)	Nil
23	3904 10 10 / 3904 10 20 / 3904 10 90	Polyvinyl chloride (PVC)	Nil
24	3904 61 00	Polytetrafluoroethylene (PTFE)	Nil
25	3905 12 / 3905 19	Poly (vinyl acetate)	Nil
26	3905 30 00	Poly (vinyl alcohol)	Nil
27	3906 10 10 / 3906 10 90	Poly (methyl methacrylate) (PMMA)	Nil
28	3907 10 00	Polyoxymethylene (POM – acetal)	Nil
29	3907 29	Polyols	Nil
30	3907 29 90	Polyether ether ketone (PEEK)	Nil
31	3907 30 10	Epoxy resins	Nil
32	3907 40 00	Polycarbonates	Nil
33	3907 50 00	Alkyd resins	Nil
34	3907 61 / 3907 69	Poly (ethylene terephthalate) (PET) chips	Nil
35	3907 91 20	Unsaturated polyester resins	Nil
36	3907 91 50	Poly (butylene terephthalate) (PBT)	Nil
37	2912 11 00 / 3909 10 10 / 3909 20 10 / 3909 40 20	Formaldehyde and related resins	Nil
38	3909 50 00	Polyurethanes	Nil
39	3911 90 90	Polyphenylene sulphide (PPS)	Nil
40	4002	Polybutadiene and styrene-butadiene rubber	Nil

By targeting chemical inputs and intermediates rather than finished products, the government’s approach addresses the root of cost escalation in agriculture-linked industries. The measure is expected to improve supply-side efficiency, support domestic manufacturing and provide indirect relief to farmers through better availability and potentially lower prices of key agricultural inputs.

Also Read: How is India Protecting Farmers from Climate Change at Scale?

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