Rejection of the levy of anti-dumping duty on MEG

The Union Government has been taking various path-breaking policy initiatives and addressing the structural issues relating to raw materials especially MMF raw materials, fibres and filament yarns to gain global competitiveness and achieve exponential growth rate in textiles and clothing manufacturing and its exports.

The Government has concluded FTAs with UAE, Australia, and Mauritius and is also in the process of concluding FTAs with several other countries on a fast track to gain global competitiveness and boost exports. Globally, the ratio of consumption of MMF textile fibre and cotton is 65:35 while the same is reversed in India as the MMF raw materials were expensive by up to 23%.

The Government also has come out with a Production Linked Incentive Scheme to encourage large-scale investment in the MMF segment. The Directorate General of Trade Remedies (DGTR) vide its Notification in F.No.6/8/2021-DGTR dated 27th October 2022 has rejected the proposed anti-dumping duty on Monoethylene Glycol (MEG), a major raw material used for the manufacture of Polyester Staple Fibre.

In a Press Release issued recently, Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA) welcomed the decision of DGTR and thanked Prime Minister, Narendra Modi and Minister of Textiles, Piyush Goyal for the bold decision taken on this front.

He has stated that MMF particularly polyester would be the growth engine and job-creating sector. He has stated that adequate availability of polyester staple fibre at an internationally competitive rate would fuel the growth of the emerging technical textile segment. SIMA Chairman has stated that as the country started facing a cotton shortage, several hundreds of spinning mills, weaving mills, knitting and garment capacities are switching over to polyester textile clothing manufacturing and thereby sustaining the financial viability of these segments apart from protecting the jobs of several lakhs of people.