India’s MMF Textile Sector Urges Government to Reject Anti-Dumping Duty on MEG, cautions of Catastrophic Impact on India’s Man-Made Fibre Sector.
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Cost Surge Threatens to Cripple India’s MMF Sector
Industry’s primary concern centers on the massive cost escalation the ADD would trigger. MEG is a key input for polyester staple fibre (PSF), yarn, filament, fabrics, and garments.
SUSTAINABILITY
"The proposed Anti-Dumping Duty is estimated to raise MEG costs further by approximately 20%, this hike will practically force MMF units across India to shut down. The industry is in such a state of shock and panic that unit owners are ready to hand over the keys to their factories, as they cannot sustain this devastating blow."
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The downstream sector is already struggling with uncompetitive raw material pricing due to the Bureau of Indian Standards (BIS) quality control order.
Pre-BIS Scenario: Domestic PSF was already 15-20% more expensive than what global competors, like those in China, paid, due to various freight and duty costs.
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Post-BIS Scenario: The lack of import threat from non-BIS countries has allowed domestic fibre producers to charge a premium of ₹6–₹7 per kg over imported parity.
Impact of ADD on MEG: Imposing ADD would widen this premium further, to approximately ₹10–₹11 per kg, severely crippling the already strained downstream MSMEs.
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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.

