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Tuesday, 23 June 2026 16:52

India reinforces trade safeguards on Chinese PET resin imports

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The Indian Government has officially extended the anti-dumping duty on bottle-grade Polyethylene Terephthalate (PET) resin originating from China for another five years. Following a comprehensive sunset review by the Directorate General of Trade Remedies (DGTR), the Ministry of Finance confirmed, continuation of a $200.66 per metric ton levy on imports with an intrinsic viscosity of 0.72 decilitres per gram or higher. Formalized in mid-June 2026, this regulatory action aims to neutralize the impact of persistent dumping practices that have historically undercut domestic pricing and compromised the financial stability of Indian polymer manufacturers.

Industry impact and strategic decoupling

While PET resin is a fundamental component in the packaging sector, its influence on the broader textile value chain remains largely indirect. Most large-scale Indian polyester producers operate as fully integrated entities, converting purified terephthalic acid (PTA) and monoethylene glycol (MEG) directly into polyester staple fibre and filament yarns. By bypassing the need for intermediate PET resin chips, these manufacturers insulate themselves from raw material import volatility. Market analysts observe, the current decline in global crude oil prices and associated feedstocks is exerting significant downward pressure on polyester costs, effectively masking any incremental expenses that downstream converters might face due to the anti-dumping measure.

Navigating feedstock volatility

The extension of this trade barrier serves as a defensive mechanism to ensure a level playing field, particularly as regional consumption of packaged goods continues to climb. However, the textile industry’s pivot toward circularity is providing a buffer against such trade-related cost fluctuations. The increasing industrial adoption of chemically and mechanically recycled PET - often marketed as rPET chips - is offering manufacturers a domestic, sustainable alternative that circumvents the reliance on virgin imported polymers. As domestic supply chains become more sophisticated and self-reliant, the reliance on high-duty imported Chinese resin is expected to diminish further, reinforcing India's broader industrial objective of achieving material self-sufficiency.

PET resin in industry

Polyethylene Terephthalate (PET) resin is a versatile thermoplastic polymer primarily used for food and beverage packaging, such as bottles. In the textile sector, specialized textile-grade PET is spun into polyester fibers and yarns. The Indian market is currently scaling production to prioritize domestic and recycled inputs for long-term supply chain security.