Surat, which is famed to house India’s largest man-made fabric (MMF) hub, is in for bad times with the Indian Finance Ministry’s decision to impose definitive anti-dumping duty on purified terephthalic acid (PTA) imports from China, Iran, Taiwan, Indonesia and Malaysia. This move will only raise yarn prices by Rs 3 to Rs 5 per kg in the domestic market, thereby increasing the final cost of the polyester fabric manufactured in Surat, fear industry sources.
As per government notification, the PTA imports from China, Iran, Taiwan, Indonesia and Malaysia will attract duty ranging from $85.67 per tonne to $168.76 per tonne. The high import duty will prevent small spinners in Surat and other places in the country from importing PTA, main raw material for manufacturing of yarn. PTA, a white, free-flowing crystalline powder, is the primary raw material for the manufacture of polyester chips, which in turn is used in a number of applications in textiles, packaging, furnishings, consumer goods, resins and coatings.
According to the Surat Art Silk Cloth Manufacturers' Association (SASCMA), there is an urgent need for slapping anti-dumping duty on fabrics and not PTA imported from China and other foreign countries.