Hydrobromic Acid Prices are Consistently Rising in India due to rising Import Taxes and Liquid Bromine Prices

According to the market experts, with a slow stabilizing trade deficit, the Indian government has got enough room to put off rapidly increasing import duties. As India is turning extremely protectionist, the government is likely to maintain a status quo on import duties in the Union Budget for 2022-23, for the first time since 2018-19. Import duties are basically taxes that are collected on imports by the customs authorities. Apart from generating revenue, it also serves as a mechanism to track the flow of products into the domestic market. The Indian authorities have been consistently increasing import duties for a long time now. As per an industry expert, "Continuously burgeoning trade deficit had created a policy headache for the government back in 2018-19. However, since then, the deficit has narrowed". 

As per ChemAnalyst, the prices of Hydrobromic Acid are continuously increasing in the Indian domestic market on the back of the rising import taxes as it is primarily imported from Israel. The rising costs of upstream Liquid Bromine are accelerating the Hydrobromic Acid prices in the country. The rising offtakes from the end-user pharmaceutical and agrochemical industries are gyrating the demand for Hydrobromic Acid in the market. Recently, a minister of chemicals and fertilizers had confirmed the government's plan to introduce a Production Linked Incentive (PLI) scheme for the promotion of domestic manufacturing of Agrochemicals, which will further drive the demand for Hydrobromic acid across India. The crop protection industry had also been intending to promote Agrochemical manufacturing, saying that India could become a worldwide champion in the manufacturing of agrochemicals.