A request by Reliance Industries has led to the Ministry of Commerce and Industry-led Director General of Trade Remedies (DGTR) launching an anti-dumping investigation into the import of mono ethylene glycol (MEG) from Kuwait, Saudi Arabia, and Singapore. A key textile material, MEG is used to produce polyester staple fibre (PSF).

A significant producer of polyester staple fiber through the Chemicals and Petrochemicals Association of India (CPMA), Reliance has raised concerns over the impact of imported MEG on the domestic industry. 

Accusing the above-mentioned countries of dumping MEG imports into India at prices below normal value, CPMA alleges, this not only causes material injury to domestic producers but also threatens the industry’s future viability. With the support of Indian Glycol, the association has called for imposition of an anti-dumping law on the material’s imports.

In response, DGTR will examine MEG imports from Apr 01, 2023, to Mar 31, 2024, while it will also make an injury assessment of the fiscal years 2020-21, 2021-22, and 2022-23. The exact production costs in the countries under investigation are not publicly available. However, the significantly lower export prices suggest dumping practices, says CPMA

Though anti-dumping measures typically aim to protect domestic producers, they could potentially hurt downstream industries, such as garment, fabric, and yarn manufacturers, that rely on MEG imports. Raising production costs for these sectors, anti-dumping duties reduce their competitiveness in the global market.