MEG is one of the main raw materials for the production of polyester fibre and filament.
| Photo Credit: PERIASAMY M
The textile industry has appealed to the government to not levy anti-dumping duty on Mono Ethylene Glycol (MEG), which is one of the main raw materials used in the production of polyester fibre and filament.
R.K. Vij, secretary general of the Polyester Textile Apparel Industry Association, told The Hindu that the textile industry consumed 70%-75% of Purified Terephthalic Acid (PTA) and MEG, the primary raw materials for the production of polyester fibre.
The annual requirement of MEG is 28 lakh tonne and close to 12 lakh tonne is imported from Singapore, Qatar, and Saudi Arabia. The industry cannot 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 said.
India imports 40% of the MEG consumed by the domestic manufacturers. Further, there is no project in the pipeline for the next three to four years to increase the production of MEG in the country. The government removed ADD on PTA in the 2020 Union Budget to ensure the availability of raw materials at international prices for the domestic MMF industry. It should not impose the ADD on MEG too.
The government recently reduced the GST on MMF yarn and fabrics to give a thrust to the production of MMF textiles. If the anti-dumping duty is imposed on MEG, the MMF sector will not see growth as the raw material for the production of synthetic products will become expensive, he said.
Ashwin Chandran, chairman of the Confederation of Indian Textile Industry and the chairman of the Southern India Mills Association, Durai Palanisamy, stated that polyester fibre is predominantly made from PTA and MEG. The raw materials should be available at international prices for the textile industry.
The industry is hopeful of meetings with Textiles, Finance, and Chemical Ministries soon to discuss the issue, added Mr. Vij.
Published – October 04, 2025 08:44 pm IST
