The Indian textile industry has appealed to the government not to impose an anti-dumping duty (ADD) on Mono Ethylene Glycol (MEG) — a key raw material used in the production of polyester fibre and filament. Industry representatives cautioned that the move could significantly raise production costs and hurt the competitiveness of India’s man-made fibre (MMF) sector.
R.K. Vij, Secretary General of the Polyester Textile Apparel Industry Association, said that the textile industry accounts for nearly 70%–75% of the total consumption of Purified Terephthalic Acid (PTA) and MEG, both essential for polyester fibre manufacturing.
India’s annual requirement of MEG stands at around 28 lakh tonnes, of which approximately 12 lakh tonnes are imported from Singapore, Qatar, and Saudi Arabia. Due to Quality Control Order restrictions, imports from China are currently not permitted.
“One of the critical raw materials for man-made fibre, yarn, filament, fabrics, and garments — MEG — is set to become 20% more expensive if the proposed anti-dumping duty is imposed,” Mr. Vij warned.
Currently, about 40% of MEG consumed by domestic manufacturers is imported, and there are no upcoming projects in the next three to four years to increase local production capacity.
The association recalled that the government had removed the anti-dumping duty on PTA in 2020 to ensure raw material availability at competitive international prices. It urged a similar approach for MEG to sustain the growth momentum in the MMF segment.
Industry leaders, including Ashwin Chandran, Chairman of the Confederation of Indian Textile Industry (CITI) and the Southern India Mills Association (SIMA), and Durai Palanisamy, also emphasized that the MMF sector’s growth depends on affordable access to PTA and MEG.
The textile industry lauded the government’s move to reduce GST on MMF yarn and fabrics, noting that such initiatives promote sectoral expansion. However, the proposed duty on MEG could reverse these gains by making synthetic raw materials costlier.
The industry is expected to hold discussions soon with the Textiles, Finance, and Chemicals Ministries to present its concerns and seek relief on the proposed levy.
