NITMA Slams MEG Anti-Dumping Duty: MSME Threat Looms
Leading textile and apparel associations across India have united to voice a "Strong Opposition" against the Directorate General of Trade Remedies’ (DGTR) recommendation to impose steep Anti-Dumping Duties (ADD) on Mono Ethylene Glycol (MEG). Industry leaders warn that the proposed duties, ranging from $103 to $137 per metric tonne, could dismantle the progress made by recent GST reforms and cripple the downstream value chain.
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A Counter-Productive Policy Shift
While the industry expressed sincere appreciation for the Government of India’s recent decision to reduce GST on Manmade Fibre (MMF) and yarn to 5%, the proposed ADD on MEG threatens to negate these benefits entirely. Experts estimate that the duty would increase MEG costs by approximately 20%, effectively erasing the affordability gains intended for consumers and manufacturers alike.
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The Critical Supply Gap
The industry highlights a staggering 40% domestic demand-supply gap. With national demand reaching 3.1 MTPA and domestic capacity limited to 2.5 MTPA, India is structurally dependent on imports from strategic partners like Kuwait, Saudi Arabia, and Singapore.
"This is not just a trade remedy; it is a chokehold on the backbone of Indian textiles," stated industry representatives. "No new MEG plants are in the pipeline to meet current demand, making these punitive duties a direct tax on survival."
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Expected Socio-Economic Consequences
The collective of over 15 industry and trade associations warned of a "domino effect" that could derail the vision of Viksit Bharat:
MSME Crisis: Approximately 40,000 small-scale manufacturers face immediate threats to their viability, with many at risk of closure.
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Mass Unemployment: An estimated 3 lakh potential jobslinked to the Production Linked Incentive (PLI) scheme are now in jeopardy.
Investment Stagnation: Between ₹20,000–₹30,000 crore in planned expansions and modernization projects are likely to be stalled or cancelled.
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Global Uncompetitiveness: The duty worsens the "Inverted Duty Structure," making Indian exports significantly more expensive than global competitors.
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A Call for Public Interest Intervention
The industry is drawing a direct parallel to 2020, when the Union Government revoked similar duties on PTA (another key raw material) in the interest of the public and the broader textile sector.
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Industry Protest
The protest represents a PAN-India movement involving over 15 major textile and apparel associations (T&A). The group advocates for sustainable and inclusive growth, ensuring that the "lifeblood" of the polyester value chain remains accessible to the thousands of MSMEs that form the heart of India's industrial landscape.
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These industry bodies have made a Humble Submission to the Union Finance Ministry to reject the DGTR recommendations.
CREDITS: PR from SG, NITMA official WhatsApp chat. The content has not been edited and reviewed by us.
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