In 2018, the Indian government removed the 12% GST on sanitary pads. For many, it felt like a long-overdue victory. The so-called “period tax” on menstrual products was gone. Finally, right? Except walk into a store today- be it a mall or your local kiraniwalah– and a pack of pads will still burn a hole into your wallet. If the tax is gone, why are menstrual products still so expensive?
This is due to a policy quirk called the Inverted Duty Structure. Pads themselves are exempt from GST, but the materials that make them work, Super Absorbent Polymers (SAP), polyethylene films, adhesives, and even packaging, are still taxed at 12 to 18%. Manufacturers cannot claim refunds on these input taxes because the finished product is rendered tax-free by law. Since the cost is built into every pack, we are still paying exorbitant prices, which means that the 0% GST on the finished product is not much more than a performative headline.
How Pads Get So Expensive
There are several things involved in the production of a single sanitary napkin:
- Raw materials (18 % GST): SAP, polyethylene, and adhesives make the pad absorbent and safe. Because they are all separately taxed at the highest slab this also sets a high baseline for the price.
- Machinery (18 % GST): Pads require specialised machines to cut, compress, and assemble layers. Large corporations can absorb these costs, but small local producers usually cannot, so this keeps the competition low and prices high.
- Packaging (18 % GST): Even the plastic wrapper that keeps the pad hygienic is taxed very highly.
All these costs are separately added throughout the production cycle as indirect taxes. This is why the GST exemption on the finished product does very little to reduce what people actually pay.
Market Monopoly
Furthermore, India’s menstrual hygiene market is controlled by a handful of very large corporations. These set prices to maximise their profit, and so smaller producers, who might even sell pads at lower prices simply cannot compete. High input taxes, delayed refunds, and operational costs make survival very difficult for them.
Additionally, imports add another layer of unfairness. Foreign companies sometimes receive tax benefits in their home countries, allowing their products to sell in India cheaper than locally produced pads. Meanwhile, the largest domestic companies maintain their margins. The result is that people who need affordable pads are the ones who end up paying the most in proportion.
Why this Matters
Expensive menstrual products are far more than a hole in your wallet. Access to them translates directly to whether a menstruator has access, opportunity, and even basic dignity.
The cultural stigma around menstruation also makes it worse. Periods are already shamed or hidden in many communities. When access to affordable hygiene products is limited, that shame becomes a financial burden too. Period poverty cannot be a simple economic problem because it is a barrier to health, education, and basic dignity.
Change Comes With Us
Structural problems require structural solutions. That being said, there are a few ways to make menstrual products more accessible and affordable:
- Zero-rating essential inputs: Refund taxes on SAP, adhesives, and machinery to lower production costs.
- Supporting sustainable alternatives: Menstrual cups or reusable cloth pads cost more upfront but last for years, so this then reduces the long-term expenses. Subsidies could also make these options much more accessible.
- Essential commodity status: Placing price caps on basic pads will definitely prevent price gouging and make them more widely available. We must support the policy to add Menstrual Products to the Essential Commodities Act, 1995.
- Decentralized production: Empowering small, local manufacturers, especially women’s cooperatives will break corporate monopolies. This will keep prices low, and return control of essential goods to communities rather than distant shareholders.
The Takeaway
Let’s be real: periods happen, whether we like it or not, and the things we need to manage them shouldn’t feel like a luxury. The GST exemption on pads looked like progress, but for most people it barely made a dent. High material costs, a market controlled by a handful of huge companies, and almost no support for small local producers keeps prices frustratingly high, and this needs to change.
Pads are essential. They’re about your health, your dignity, and the simple ability to go through life without your period dictating your schedule or your finances. The policies, the market, and society need to prioritise people over profit. Most of all, change won’t happen on its own. We all have a role to play in demanding it.