The rupee impact on raw material prices is back at the top of every purchase manager’s mind this week. The rupee touched a two-week low of about 95.37 per US dollar on 29 October, recovered to close October near 94.95, and Brent crude is still trading above $110 a barrel. For Indian buyers of titanium dioxide, EVA, resins, solvents and other imported inputs, every rupee move now shows up directly in the landed cost. Below: what happened, which materials are most exposed, and practical steps for paint, ink, plastics, rubber and road-marking manufacturers.
What happened to the rupee in the last week
According to Business Standard, the rupee slipped to 95.3675 per dollar on 29 October 2026, its weakest level in a fortnight, on “sticky” dollar demand. Traders said the RBI stepped in mildly to limit the fall. Earlier in October the rupee had climbed to an over one-month high of 94.32.
A day later, a Reuters report carried by Business Recorder said the rupee closed at 94.95 on 30 October and posted its best monthly gain since February, about 1%. The same report noted:
- The all-time low is 96.96 per dollar, hit in May 2026, and the rupee is still not far from it.
- In October the RBI moved oil companies’ dollar buying away from the spot market, tightened hedging rules and raised interest rates for the first time in nearly four years.
- Analysts say elevated oil prices remain the main risk for the currency.
On 2 November, HDFC Sky said the rupee firmed as crude eased, with near-term support around 94.70 and resistance near 95.80.
Why crude oil and the dollar move together for chemical buyers
Crude oil is the second half of the story. Fortune reported Brent at $112.60 per barrel on the morning of 2 November 2026 — down from $115.86 the day before, but up about 5% in a month and around 71% higher than a year ago.
For India this is a double hit. A higher oil bill raises demand for dollars, which weakens the rupee. A weaker rupee then makes every dollar-priced import costlier. Crude-linked materials such as toluene, MEK, hydrocarbon resins, EVA and PVC face both pressures at once. We covered the oil side in detail in our earlier article on crude oil price impact on solvents.
Rupee impact on raw material prices: which inputs are most exposed
The rupee impact on raw material prices is not the same for every input. A simple way to think about exposure:
High exposure (imported, priced in USD)
- Titanium dioxide (rutile and anatase): a large share of TiO2 used in India is imported, and import offers are quoted in dollars.
- EVA, POE and thermoplastic elastomers: grades from LG, Hanwha, Lotte and other overseas producers are dollar-priced.
- Imported glass beads for road marking (Potters, Sovitec, Swarco) and specialty additives.
Medium exposure (domestic, but crude-linked)
- Solvents such as toluene, MEK, MIBK, IPA and ethyl acetate — locally made, but prices follow international benchmarks.
- Resins and waxes such as C5/C9 hydrocarbon resin and paraffin wax.
Low exposure (mostly domestic minerals)
- Calcium carbonate, quartz powder, barium sulphate and other fillers mined and processed in India. The currency effect here is much smaller.
Anti-dumping duty in dollars makes the rupee matter twice for TiO2
There is an extra twist for titanium dioxide. On 24 October 2026 the Finance Ministry issued Notification 26/2026-Customs (ADD), re-imposing anti-dumping duty on TiO2 from China for five years. The duty is fixed in US dollars per tonne — from $460 to $609 for named producers, and $681 for all others.
Because the duty is in dollars, a weaker rupee raises both the base price and the duty in rupee terms. As a simple example, at 95 rupees per dollar, a $681 per tonne duty works out to roughly ₹64,700 per tonne (about ₹65 per kg) before other levies. Each one-rupee fall in the currency adds about ₹681 per tonne on the duty alone. For background on the duty itself, see our post on titanium dioxide anti-dumping duty in India.
Other dollar-linked rules buyers should remember
- PVC resin minimum import price: the DGFT set an MIP of $766 per tonne CIF on suspension-grade PVC from 24 July 2026 for six months, according to ChemAnalyst. A dollar floor means a weaker rupee lifts the minimum rupee cost too.
- 7.5% customs duty back on petrochemicals: after a temporary waiver expired in July, duty was reinstated on items such as toluene, PVC, polyethylene, polypropylene and epoxy resins, as reported by A2Z Taxcorp. Customs duty is charged on the rupee assessable value, so it also rises when the rupee weakens.
Practical steps for buyers this month
You cannot control the currency, but you can reduce the rupee impact on raw material prices in your own costing:
- Separate the currency effect from the supplier’s price. When a quote rises, ask how much is the dollar price and how much is the exchange rate.
- Lock rates for confirmed orders. If you import directly, talk to your bank about forward cover for orders already planned. If you buy locally, ask for a rupee price valid for a fixed period.
- Buy one to two months of critical imported inputs. With the rupee near record lows and oil volatile, a modest buffer of TiO2 or EVA can protect production without locking up too much working capital.
- Optimise formulations with domestic fillers. In many paints, putties and plastic compounds, a well-chosen grade of calcium carbonate or barium sulphate can reduce TiO2 or polymer loading without losing quality. Test first.
- Compare non-China TiO2 grades. The anti-dumping duty applies to Chinese-origin TiO2, so landed costs of other origins may now compare better.
- Review price lists to your own customers. Many paint companies have already raised prices this year. If your inputs are dollar-linked, build a clear, fair escalation clause into new contracts.
How Neelgiri Chemicals can help
Neelgiri Chemicals supplies imported and domestic raw materials from ready stock, so you can plan purchases without handling customs and currency risk yourself:
- Titanium Dioxide Rutile — multiple origins and grades, including Silverstar B101.
- EVA (Ethylene Vinyl Acetate) — LG, Hanwha, Lotte and other grades such as LG EVA 28005.
- Industrial Solvents — including Toluene and MEK.
- Calcium Carbonate — domestic fillers such as Micronized Calcium Carbonate SMC-2800 to help optimise costs.
- Road Marking Glass Beads — imported and Indian drop-on and intermix beads.
Frequently Asked Questions
How does a weaker rupee affect raw material prices in India?
Most imported chemicals are priced in US dollars. When the rupee weakens, the same dollar price costs more rupees, and customs duty and anti-dumping duty charged on that value also rise. Crude-linked domestic products often follow international prices, so they move too.
Which paint and plastic raw materials are most affected by the rupee?
Imported titanium dioxide, EVA, POE, specialty additives and imported glass beads are the most exposed. Solvents and resins are affected through crude oil prices. Domestic fillers like calcium carbonate are the least affected.
Why does the TiO2 anti-dumping duty change with the exchange rate?
The duty notified on 24 October 2026 is fixed in US dollars per tonne ($460 to $681 depending on the producer). It is converted to rupees at the time of import, so a weaker rupee means a higher duty in rupee terms.
Should buyers stock up on imported raw materials now?
A modest buffer of one to two months for critical inputs can reduce risk while the rupee is near record lows and crude is volatile. Match purchases to confirmed production plans rather than speculating.
Get a quote today
Need current prices for TiO2, EVA, solvents or fillers? Message us on WhatsApp, call +91 87961 61378, or send your requirement through our contact page.
Sources: Business Standard (29 Oct 2026), Reuters via Business Recorder (30 Oct 2026), HDFC Sky (2 Nov 2026), Fortune (2 Nov 2026), Customs Notification 26/2026-Customs (ADD) via World Trade Scanner, ChemAnalyst (24 Jul 2026), A2Z Taxcorp (18 Jul 2026). Exchange rates and prices change daily; figures are for general information only and are not financial advice. Please confirm current rates before placing orders.
