The Indian Express had reported that domestic companies had raised prices immediately after the government announced the MIP for six months on July 24.The Commerce and Industry Ministry on Sunday said that the minimum import price (MIP) of $0.766 per kg on PVC Suspension Resin (S-PVC) — used to manufacture housing and irrigation pipes — imposed on June 24 is aimed at reducing India’s import dependency on the item over time.Responding to a story by The Indian Express on small firms flagging likely hike in PVC pipe prices used in infrastructure projects across the country, the ministry said that the domestic capacity of about 1,615 KT per annum is lower than the demand of about 4,139 KT per annum, adding that MIP is not an import ban or an import quota and that imports at fair prices remain open.“Imports used for export production under Export Oriented Unit, Special Economic Zones and the Advance Authorisation Scheme are exempt from the measure. Further, the Department of Chemicals and Petrochemicals (DCPC) has informed that the PVC Homopolymer Quality Control Order, 2024 was revoked on November 12, 2025 to ease supply constraints. In addition, about 3,000 KT of new domestic capacity is expected during 2026-27. These steps are expected to improve availability and reduce the present dependence on imports over time,” the ministry said.“The MIP is applicable for six months, is based on the assessed cost of production with a reasonable margin, and was introduced after consultation with stakeholders. The measure only prevents imports below the prescribed fair-price level, while allowing normal imports at or above that level. It also contains exemptions for export production,” the ministry said.The increase in domestic price may appear to arise from “commercial pricing decisions and not from any price fixed under the MIP notification”, the ministry clarified. The Indian Express had reported that domestic companies had raised prices immediately after the government announced the MIP for six months on July 24.DCPC’s cost assessment shows that prices in the range of $0.65-0.75 per kg are at or below the cost of production of even the most efficient domestic producer. “DGTR had also found dumping and, in August 2025, recommended anti-dumping duty ranging from $22 to $284 per MT based on the established dumping margin. The purpose of the MIP is, therefore, to address imports at unfairly low prices. Imports in any quantity remain permitted at or above US$ 0.766 per kg,” the ministry said.“Further, DCPC has informed that the PVC Homopolymer Quality Control Order, 2024 was revoked on 12.11.2025 to ease supply constraints. In addition, about 3,000 KT of new domestic capacity is expected during 2026-27. These steps are expected to improve availability and reduce the present dependence on imports over time. The MIP is applicable for six months, is based on the assessed cost of production with a reasonable margin, and was introduced after consultation with stakeholders,” the ministry said.Story continues below this adThe notification came as the Adani Group has announced plans to enter the sector and is setting up a PVC plant in Mundra, Gujarat, through its subsidiary Mundra Petrochem Ltd. The project began in 2021, but major equipment procurement and site construction were put on hold in 2023. Work on the Mundra project resumed in 2024, with an initial planned capacity of 1 million tonnes per annum, and commissioning expected by fiscal 2028.Reliance Industries, which controls 51% of the manufacturing, currently makes PVC via the oil-derived ethylene route and plans to expand capacity to 1.5 MMT per annum by 2026-27. Adani Group, by contrast, is building a 2 MMT integrated PVC complex at Mundra using the coal-to-chemical (calcium carbide) route, with the first 1 MMT phase expected to start production in FY27-28.Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, specializing in economic policy and financial regulations. With over five years of experience in business journalism, he provides critical coverage of the frameworks that govern India's commercial landscape. Expertise & Focus Areas: Mishra’s reporting concentrates on the intersection of government policy and market operations. His core beats include: Trade & Commerce: Analysis of India's import-export trends, trade agreements, and commercial policies. Banking & Finance: Covering regulatory changes and policy decisions affecting the banking sector. Professional Experience: Prior to joining The Indian Express, Mishra built a robust portfolio working with some of India's leading financial news organizations. His background includes tenures at: Mint CNBC-TV18 This diverse experience across both print and broadcast media has equipped him with a holistic understanding of financial storytelling and news cycles. Find all stories by Ravi Dutta Mishra here ... Read More