A dramatic rise in crude oil prices caused by the ongoing West Asia conflict has sent shockwaves across the PVC industry, driving raw material costs up by 60% and producing acute shortages, compelling producers to halt production and pass on price increases to customers.
Prices for polymers, one of the primary basic materials obtained from crude oil refining, have risen dramatically.
According to Anil Jain, Vice-Chairman & CEO of Jain Irrigation Systems, the West Asia war began on 28 February and resulted in a 60% increase in raw material prices, from 70 to 115 per kilogram.

"India continues to rely on the rest of the globe for PVC, although the country has enormous potential. Our utilisation remains low, and PVC presents amazing development prospects in the future," he stated on the sidelines of the global summit and exhibition VINYL INDIA 2026, which opened on Thursday.
PVC is vital to water and food security, and the government should endeavour to establish a robust and integrated PVC value chain to mitigate global geopolitical disturbances and assure long-term pricing stability, he said.
The PVC market is currently expected to be over 4.3 million tonnes per year, with yearly growth rates ranging from 6 to 8 percent. By 2030, it is expected to reach ₹50,000 crore, up from the present ₹35,000 crore.

According to MP Taparia, Chairman & Managing Director of Supreme Industries, PVC presents a big opportunity due to India's developing economy and increased demand in housing, agriculture, healthcare, and infrastructure.
The lack of HDPE has also had an impact on a variety of other industries, including FMCG, cement, agrochemicals, and fertiliser, which rely on it for packaging.
According to Pitamber Lal Sharma of Shri Navkar Agropack, HDPE polymer prices have increased from ₹98 to ₹163 per kg in recent months due to disruptions in global supply chains caused by the West Asian war.

The cost of master batches has risen from ₹220 to ₹340 per kg. The rapid surge in raw material prices has resulted in a nearly 70% increase in the production cost of HDPE bottles, he noted.
Durgesh Agarwal of Central India Polysack stated that essential inputs for the packaging business, including as PP woven fabric, BOPP film, HDPE, and PP laminates, had increased by 60-80% in recent weeks.
The abrupt increase in the cost of essential materials used in the production of fertiliser bags and rice exports will place tremendous strain on manufacturers and the entire supply chain, he noted.
According to Rajib Chakraborty, National President of the Soluble fertiliser Industry Association, war-related disruptions have a substantial impact on fertiliser packaging costs, which account for 4-10% of the ultimate product cost.High-value fertilisers, on the other hand, remain relatively insulated, with packaging accounting for only 2-4 percent of total costs, he added.
Dr. Rahul Mirchandani, Chairman & MD of Aries Agro, stated that despite a 70-80% increase in plastic packaging and a 15-20% increase in paper packaging, there remains a shortage of supply.
End product pricing would undoubtedly rise sharply beginning April 1, as alternative packaging is complex and will take months to design, he explained.