PTAIA Urges Government To Drop Plan For Anti-Dumping Duty On MEG
The Polyester Textile Apparel Industry Association (PTAIA) has appealed to the government to reconsider the proposed anti-dumping duty (ADD) on Mono Ethylene Glycol (MEG), a key input in polyester fiber manufacturing, warning that such a move could aggravate existing shortages and disrupt the textile industry’s supply chain.
The Directorate General of Trade Remedies (DGTR) has recently issued its Disclosure Statement on the matter, with a final decision from the government expected soon.
According to R. K. Vij, Secretary General, PTAIA, MEG is an essential raw material for producing polyester fibers, chips, and yarn, which are further processed into fabrics and garments. As the man-made fiber (MMF) segment is a major growth driver for India’s textile sector, any restriction on MEG availability would have a cascading impact across the value chain.
At present, only three domestic manufacturers, Reliance Industries Ltd (RIL), Indian Oil Corporation Ltd (IOCL), and India Glycols Ltd (IGL), produce MEG in India. RIL, the largest producer, consumes nearly 60 percent of its own output, resulting in a domestic shortfall of approximately 1.2 million tonnes annually, a gap that is projected to persist through FY 2025–26.
The association warns that the proposed duty could endanger US$ 2.4 billion worth of new investments and jeopardize around 300,000 jobs in the MMF value chain. Vij emphasized that imposing ADD on MEG would negate the benefits of the government’s upcoming GST rate rationalization for MMF products and contradict its broader goal of fostering competitiveness and job creation in the textile sector.
PTAIA has urged policymakers to support the industry by refraining from levying anti-dumping duty on MEG, enabling a stable and affordable supply of raw materials critical to the continued growth of India’s synthetic textile industry.
