In the forthcoming budget, a cut in the prices of many consumer products using petrochemical inputs can be expected. This will also include a reduction in the cost of textile products.
The department of chemicals and petrochemicals has urged the finance ministry to make a substantial reduction in the customs duty on several building blocks and catalysts used in the chemical and petrochemical industry.
The finance ministry is most probable to give its consent to the recommendations made but it will have to keep a check on inflation for the purpose. Besides, with the general election coming up in 2009, preventing inflation will be a pre-requisite.
In spit of the already subsidized prices of fuel, the cost crude oil derivatives are soaring high because of the mounting international oil prices. Naphtha prices alone, surged by 9 percent.
The recent proposal now under consideration includes reducing the Customs duty from 10 to 5 percent on furnace oil, naphtha, non-cooking coal and liquefied natural gas and kerosene used for industrial purposes. Import duties on these fuels may also be reduced to enable Indian industries to hold back its competitive edge in the world market.
marketing@alchempro.com
