Industry’s Rebuttal of Misleading Pro-Duty Claims being spread across the media
Claim 1: Price increases are manageable and can be passed on
A MEG duty raising costs by Rs. 9–13 per kg cannot be absorbed by MSME downstream units without wiping out already thin margins. Even a Rs. 4 per kg rise in yarn pushes fabric costs for small weavers and triggers a shift toward imports, destroying jobs.
Claim 2: Domestic capacity can meet demand
Installed MEG capacity is insufficient relative to demand; average production falls short and available
domestic supply for MMF is limited. Liquid handling, vessel scheduling and storage constraints prevent
rapid import-based substitution.

