India approaches deadline on proposed MEG anti-dumping duty

The recommendation followed a petition filed by Reliance Industries and Indian Oil Corporation, the two main domestic producers of MEG. They argued that dumped imports had caused material injury through depressed prices, reduced margins and weakened market share. DGTR’s investigation concluded that there was sufficient evidence of dumping and injury to justify a remedial tariff.

The downstream polyester industry, comprising manufacturers of fibres, yarn, PET resin and textile intermediates, has stepped up lobbying efforts to prevent the duty from being imposed. Industry associations argue that the proposed ADD would increase manufacturing costs across the polyester value chain at a time when global competition remains intense and margins remain under pressure.

The geopolitical and regulatory context has also influenced sentiment. Earlier this month, the government withdrew quality control orders (QCOs) on PTA, MEG and several polyester products, signalling an intent to ease import barriers and support export competitiveness. Industry stakeholders say imposing ADD immediately after removing QCOs would create policy inconsistency and increase uncertainty for raw material sourcing.

Meanwhile, producers maintain that without tariff protection, the domestic industry would remain vulnerable to volatile pricing, especially from exporters with structural cost advantages in the Gulf region.

Whether the government prioritises raw material availability for downstream users or protection for domestic petrochemical investment remains the key question. With the clock ticking, the industry awaits clarity on what will be one of the final major trade-policy decisions affecting the polyester ecosystem this year.

ALCHEMPro News Desk (KUL)