A sharp surge in crude oil prices triggered by the ongoing West Asia conflict has sent shockwaves through the PVC industry, driving raw material costs up by 60 per cent and causing acute shortages, forcing manufacturers to curb production and pass on price increases to consumers.
Prices of polymers, one of the key raw materials derived from crude oil refining, have jumped substantially.
Anil Jain, Vice-Chairman & CEO, Jain Irrigation Systems said the West Asia war that began on February 28 led to a sharp increase in raw material prices, which rose by about 60 per cent — from ₹70 to ₹115 a kg.
“India is still dependent on the world when it comes to PVC, but we have huge potential in the country. Our utilisation remains low, and PVC offers extraordinary growth opportunities in the future,” he said on the sidelines of global summit and exhibition VINYL INDIA 2026 inauguration on Thursday.
PVC is at the heart of water and food security and the government should work towards building a stable and integrated PVC value chain to overcome global geopolitical disruptions and ensure long-term price stability, he said.
The PVC market is currently estimated at about 4.3 million tonne per annum and has been growing at 6–8 per cent annually. It is estimated to hit ₹50,000 crore by 2030 from the current level of ₹35,000 crore.
MP Taparia, Chairman & Managing Director, Supreme Industries said PVC has a huge opportunity driven by India’s growing economy and rising demand across housing, agriculture, healthcare, and infrastructure.
The shortage of HDPE has also taken a toll on scores of other sectors including FMCG, cement, agrochemical and fertilizer industry which are dependent on it for packaging.
Pitamber Lal Sharma, Shri Navkar Agropack said HDPE polymer prices have surged from ₹98 a kg to about ₹163 a kg in last few months due to disruption in global supply chains because of West Asia war.
The cost of master batches has increased from about ₹220 to ₹340 per kg. This sharp rise in raw material prices has led to nearly 70 per cent increase in the production cost of HDPE bottles, he said.
Durgesh Agarwal, Central India Polysack said the packaging industry’s key inputs such as PP woven fabric, BOPP film, HDPE, and PP laminates have risen 60–80 per cent in recent weeks.
The sudden surge in costs of these material used in manufacturing fertilizer bags and rice exports will put significant pressure on manufacturers and the overall supply chain, he added.
Rajib Chakraborty, National President, Soluble Fertiliser Industry Association said war-driven disruptions are significantly impacting fertiliser packaging costs which account for 4-10 per cent of end product cost.
In contrast, high-value fertilisers remain relatively insulated, with packaging contributing only 2-4 per cent of costs, he added.
Dr Rahul Mirchandani, Chairman & MD Aries Agro said despite the 70-80 per cent increase in plastic packaging and 15-20 per cent increase in paper packaging, there is a shortage of supply.
The end product pricing will certainly go up steeply from April 1 as an alternate packaging are difficult and will take months to design, he added.
Published on April 9, 2026