The textile industry has appealed to the federal government to not levy anti-dumping duty on Mono Ethylene Glycol (MEG), which is without doubt one of the foremost uncooked supplies used within the manufacturing of polyester fibre and filament.
R.Ok. Vij, secretary basic of the Polyester Textile Apparel Industry Association, instructed The Hindu that the textile industry consumed 70%-75% of Purified Terephthalic Acid (PTA) and MEG, the first uncooked supplies for the manufacturing of polyester fibre.
The annual requirement of MEG is 28 lakh tonne and near 12 lakh tonne is imported from Singapore, Qatar, and Saudi Arabia. The industry can not import MEG from China on account of Quality Control Order restrictions.
“One of the critical raw materials of manmade fibre, yarn, filament, fabrics and garments – MEG is going to become 20% more expensive due to the proposed imposition of Anti-dumping Duty (ADD),” he mentioned.
India imports 40% of the MEG consumed by the home producers. Further, there isn’t a mission within the pipeline for the subsequent three to 4 years to extend the manufacturing of MEG within the nation. The authorities eliminated ADD on PTA within the 2020 Union Budget to make sure the supply of uncooked supplies at worldwide costs for the home MMF industry. It mustn’t impose the ADD on MEG too.
The authorities lately decreased the GST on MMF yarn and materials to present a thrust to the manufacturing of MMF textiles. If the anti-dumping duty is imposed on MEG, the MMF sector won’t see progress because the uncooked materials for the manufacturing of artificial merchandise will turn into costly, he mentioned.
Ashwin Chandran, chairman of the Confederation of Indian Textile Industry and the chairman of the Southern India Mills Association, Durai Palanisamy, acknowledged that polyester fibre is predominantly comprised of PTA and MEG. The uncooked supplies ought to be accessible at worldwide costs for the textile industry.
The industry is hopeful of conferences with Textiles, Finance, and Chemical Ministries quickly to debate the difficulty, added Mr. Vij.
