Indian textile industry opposes proposed anti-dumping duty on MEG

The DGTR recommended anti-dumping duties on MEG imports from Gulf nations and Singapore in its final findings issued on September 23 this year. Under the rules, the Ministry of Finance must take a final decision within 90 days of the DGTR notification. As a result, the government has only a few days left to take a final call on the matter.

While the industry expressed sincere appreciation for the Government of India’s recent decision to reduce GST on man-made fibre (MMF) and yarn to 5 per cent, the proposed ADD on MEG threatens to negate these benefits entirely. Experts estimate that the duty would increase MEG costs by around 20 per cent, effectively erasing the affordability gains intended for both consumers and manufacturers.

The industry highlighted a staggering 40 per cent domestic demand–supply gap. With national demand at 3.1 MTPA and domestic capacity limited to 2.5 MTPA, India remains structurally dependent on imports from strategic partners such as Kuwait, Saudi Arabia, and Singapore.

“This is not just a trade remedy; it is a chokehold on the backbone of Indian textiles,” industry representatives said. “No new MEG plants are in the pipeline to meet current demand, making these punitive duties a direct tax on survival.”

A collective of more than 15 industry and trade associations warned of a “domino effect” that could derail the vision of Viksit Bharat. Around 40,000 small-scale manufacturers could face immediate threats to viability, with many at risk of closure. An estimated 3 lakh potential jobs linked to the Production Linked Incentive (PLI) scheme are now in jeopardy. Between ₹20,000 crore and ₹30,000 crore in planned expansion and modernisation projects are likely to be stalled or cancelled. The duty would also worsen the inverted duty structure, making Indian exports significantly more expensive than those of global competitors.

The industry has drawn parallels with 2020, when the Indian Government revoked similar duties on PTA, another key raw material, in the interest of the public and the broader textile sector.

The protest represents a pan-India movement involving more than 15 major textile and apparel associations. The group advocates sustainable and inclusive growth, ensuring that the “lifeblood” of the polyester value chain remains accessible to the thousands of MSMEs that form the backbone of India’s industrial landscape.

These industry bodies have made a formal submission to India’s Finance Ministry, urging it to reject the DGTR’s recommendations.

ALCHEMPro News Desk (KUL)