India approaches deadline on proposed MEG anti-dumping duty

India is closing in on a key trade-policy decision: the Finance Ministry has roughly three weeks left to act on the Directorate General of Trade Remedies’ (DGTR) recommendation to impose an anti-dumping duty (ADD) on mono-ethylene glycol (MEG) imports from Gulf countries and Singapore. The DGTR’s final findings, published on September 23, recommended a duty in the range of $102–$173 per tonne. Fibre2Fashion

Why the DGTR recommended a duty

The investigation was prompted by a petition from domestic producers — backed by Reliance-linked associations and Indian Oil — alleging that MEG imports were being dumped at prices below fair value, causing material injury to local producers through suppressed prices, shrinking margins, and lost market share. The DGTR’s probe found sufficient evidence of dumping and injury to justify remedial action. Team Lease Regtech+1

Who objects — and why

The downstream polyester ecosystem — fibre, yarn, PET resin and textile intermediate manufacturers — has mounted strong opposition. Industry groups warn that an ADD would lift MEG costs sharply across the polyester value chain, raising input costs for textile mills and creating policy inconsistency after recent government moves to liberalise raw-material imports. Trade delegations from textile hubs have appealed to the government to reject the tariff, arguing it could erode competitiveness and jeopardise investments in MMF (man-made fibre) segments. The Times of India+1

The policy context: QCO withdrawal and timing

The decision arrives against the backdrop of an important regulatory shift — the government recently withdrew Quality Control Orders (QCOs) on PTA, MEG and several polyester inputs to ease import barriers and boost export competitiveness. Stakeholders say imposing an ADD so soon after revoking QCOs would create contradictory signals and heightened sourcing uncertainty for downstream manufacturers. Textile Insights+1

Economic stakes and supply concerns

India’s polyester chain is import-dependent for key intermediates. Industry groups point to supply tightness and estimate substantial import requirements; they argue sudden cost increases at the raw-material end will cascade into higher yarn and fabric prices, squeezing margins for downstream firms already facing intense global competition. Upstream producers counter that, without trade remedies, domestic MEG producers will remain exposed to volatile import pricing and potential injury from Gulf exporters with structural cost advantages. The Times of India+1

What happens next

Under India’s anti-dumping rules, once DGTR issues final findings, the Finance Ministry has 90 days to take the final call. If the government accepts the recommendation, the duty would be notified and enforced; if it rejects the recommendation, imports continue without the proposed levy. With the statutory clock ticking, ministries and industry associations are intensifying lobbying efforts — and the decision will shape raw-material sourcing economics and investor sentiment across the polyester value chain for months to come. Fibre2Fashion

Conclusion

The MEG anti-dumping decision is a textbook policy trade-off: protect domestic petrochemical investment and capacity through tariffs, or prioritise low-cost raw-material access to keep downstream polyester and textile producers globally competitive. The Finance Ministry’s choice in the coming weeks will send a clear signal on India’s industrial and trade priorities — and will materially affect pricing and investment decisions across the polyester ecosystem. Fibre2Fashion+1