Duty-Free PTA & MEG Relief Welcomed Industry Flags Inverted Duty Concern
The Northern India Textile Mills’ Association (NITMA) has welcomed the government’s decision to eliminate customs duty on PTA and MEG until June 30, 2026, calling it a timely relief for the man-made fibre (MMF) sector amid ongoing global disruptions.
PTA (Purified Terephthalic Acid) and MEG (Mono Ethylene Glycol) are key raw materials for polyester staple fibre (PSF), and the move is expected to ease input cost pressures for domestic manufacturers.
However, NITMA highlighted a long-standing structural issue under the India-ASEAN Free Trade Agreement, citing an inverted duty structure that has impacted competitiveness. Currently, PSF attracts a 5.5% duty, while finished polyester spun yarn (PSY) is imported duty-free, disadvantaging Indian spinning mills.
With the ASEAN-India Trade in Goods Agreement under review, the association has urged the government to ensure parity by aligning duty treatment for both PSF and PSY.
NITMA also called for an extension of the duty relief if global volatility persists, stressing the need for sustained policy support to stabilise the MMF sector.
