Supreme Courts halts PTA duty, boosts Indian textile industry

The Indian textile industry is set to benefit from a recent Supreme Court decision. The court has temporarily blocked the reinstatement of anti-dumping duties on Purified Terephthalic Acid (PTA), a crucial raw material for polyester production. This move is expected to lower PTA prices, aiding downstream manufacturers.

PTA is a key component in the production of polyester fibers and yarns, widely used in textiles, clothing, and other products. In 2016, the government imposed anti-dumping duties on PTA imports to protect domestic producers. However, these duties were removed in 2020 to support the downstream industry, which argued that high PTA costs hindered competitiveness.

Domestic producers challenged the removal of duties, leading to a legal battle that culminated in the Supreme Court's decision. While the court's final ruling is awaited, the temporary stay on the reinstatement of duties has been welcomed by textile manufacturers. They expect increased access to lower-priced PTA imports from countries like South Korea and Thailand.

This development could revitalize the Indian textile sector, which has struggled with rising raw material costs. By reducing dependence on domestic PTA suppliers, manufacturers can potentially lower production costs and enhance export competitiveness. However, the long-term implications of the Supreme Court's decision remain uncertain, and the government will need to carefully balance the interests of domestic producers and the broader textile industry.