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 In a strategic move to align export-import ratios with industry demands and streamline trade practices, the Directorate General of Foreign Trade (DGFT) has issued an amendment to the Standard Input Output Norms (SION). The revision specifically modifies the import quantity allowed for one of the key raw materials used in the manufacturing of Di-octyl phthalate (DOP).
DOP is used in the pharmaceutical industry primarily as a plasticizer in the production of medical and sanitary products, such as blood bags and dialysis equipment. It also helps to prolong the life of blood stored in PVC blood bags.
According to DGFT, the changes are being implemented with immediate effect under the powers conferred by Paragraphs 1.03 and 2.04 of the Foreign Trade Policy (FTP) 2023, as amended.
The permissible import quantity for 2-ethylhexanol (Octanol), which is one of the two main raw materials in DOP production, has been marginally reduced from 0.700 kg to 0.680 kg per kg of export product. This slight adjustment is seen as a move towards tightening the input-output ratio and ensuring efficient usage of imported raw materials.
The import limit for phthalic anhydride, another key input in DOP manufacturing, remains unchanged at 0.400 kg per kg of DOP. Phthalic anhydride (PA) is used in pharmaceutical applications as a chemical intermediate for synthesizing various drugs.
By refining the input norms, the DGFT aims to enhance transparency in value addition, reduce excess import dependency, prevent misuse of input-output ratios under export promotion schemes and ensure better alignment with global production benchmarks.
According to trade analysts, this move reinforces the government’s larger goal of promoting self-reliant India by ensuring more efficient utilization of imported resources, thereby fostering domestic value addition.
This notification continues a series of targeted SION updates undertaken by the DGFT in recent months to modernize and calibrate India’s export incentive structures. With the foreign trade environment evolving rapidly due to global economic uncertainties, the commerce ministry is expected to issue further rationalizations aimed at making India’s export landscape more competitive and compliant with World Trade Organization (WTO) norms.
Exporters of Di-octyl phthalate must now realign their raw material procurement strategies to comply with the revised norms, as enforcement takes effect immediately from the date of issue.
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