SGCCI Appeals NITI Aayog to Revoke MEG Anti-Dumping Duty

Industry body warns that the duty on MEG will burden MSMEs and disrupt India’s textile supply chain.

The Southern Gujarat Chamber of Commerce and Industry has urged NITI Aayog to withdraw the proposed anti-dumping duty on Mono Ethylene Glycol, warning it could severely impact the polyester-based textile sector.

The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has urged the Central Government and NITI Aayog to reject the proposal for imposing anti-dumping duty on Mono Ethylene Glycol (MEG) — a crucial raw material in polyester yarn manufacturing.

A delegation comprising Mr. Ashok Jirawala, Acting President of SGCCI, and Mr. Ashish Gujarati, Former President, met Mr. Sanjit Singh, Program Director and Link CVO of NITI Aayog, who is also part of the Hon’ble Prime Minister Mr. Narendra Modi’s advisory team. During their meeting in New Delhi, they made a detailed representation explaining why anti-dumping duties on MEG imports would adversely affect India’s man-made fibre (MMF) textile sector.

In its submission, SGCCI highlighted that the Director General of Trade Remedies (DGTR) has recommended the imposition of anti-dumping duty on MEG under the final finding (F. No. 6/34/2024-DGTR) dated September 23, 2025. The Chamber emphasized that if implemented, this duty would severely impact the MMF-based yarn, filament, fabric, and garment segments.

Currently, India’s annual demand for MEG stands at 31 lakh metric tonnes, while domestic production capacity is around 19 lakh metric tonnes, leaving a supply gap of approximately 12 lakh metric tonnes. The country has only three MEG producers — Indian Oil Corporation, India Glycols, and Reliance Industries Limited. With the recent Quality Control Order (QCO) on MEG, imports are restricted to BIS-certified suppliers, limiting availability and already pushing prices higher. Post-QCO implementation, MEG prices have surged by ₹1.5–₹2 per kg and PTA prices by ₹4–₹5 per kg.

As per DGTR’s recommendation, the proposed anti-dumping duty rates are:

• USD 103 per ton (₹9.00/kg) on imports from Equate, Kuwait
• USD 113 per ton (₹10.00/kg) on imports from Sabic, Saudi Arabia
• USD 137 per ton (₹12.00/kg) on imports from Singapore

SGCCI warned that this move could impose an additional financial strain on MSME textile units, which already operate on narrow profit margins of 7–8%. The increased cost burden could lead to the closure of several units, rising prices of MMF yarn, fabric, and garments, and the nullification of consumer benefits from recent GST reductions. Furthermore, imports of finished goods could rise while raw material imports decline, directly impacting employment and stalling new textile investments worth ₹20,000 crore, including those under the PLI scheme.

The Chamber also noted that the United States recently imposed a 50% tariff on Indian textiles, further straining the sector. In this context, SGCCI appealed to NITI Aayog not to proceed with the anti-dumping duty on MEG, as it would severely harm the domestic textile industry, hinder export competitiveness, and reduce job opportunities.