Running story
Industry’s Rebuttal of Misleading Pro-Duty Claims being spread across the media.
Fashion Guru
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.
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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.
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Claim 3
Impact on MSMEs is negligible
The true burden on MSMEs exceeds several thousand crores; many units will halt operations and planned expansions under PLI will be deferred, jeopardizing the sector’s ability to reach government trade targets.
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Claim 4
There is no shortage and dumping is proven
Market signals show tight supply and global-linked pricing; removing ADD on PTA in 2020 preserved competitiveness for polyester feedstocks and the same logic applies to MEG today.
NITMA
MMF Industry's Unified demand :
Reject the proposed ADD on MEG.
Remove the BIS on MEG.
Keep the Key Inputs free from levies to protect MSMEs, jobs and India’s textile growth targets.
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CREDITS: This piece of info is taken from NORTHERN INDIA TEXTILE MILLS’ ASSOCIATION, PHD HOUSE, SECTOR -31/A, CHANDIGARH Official PR and has not been edited and reviewed by us.
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