India has extended the zero customs duty on PTA and MEG imports until July 15, 2026, providing temporary relief to polyester producers amid West Asia-related supply disruptions.
The move is expected to ease raw material costs, though downstream polyester prices may take longer to normalise due to high-cost inventories and uneven pass-through.
The move comes nearly three months after the government temporarily removed customs duties on the two key polyester feedstocks to cushion the impact of supply disruptions arising from the West Asia conflict. The measure offered partial relief to the man-made fibre (MMF) industry.
Industry sources said the extension would continue to ease raw material costs for polyester producers. However, they cautioned that downstream prices are unlikely to return to pre-war levels immediately, with melt prices expected to take at least another month to normalise as inventories purchased at elevated costs continue to move through the supply chain.
Industry leaders have also pointed out that the earlier duty relief did not translate into proportional reductions in downstream yarn prices, urging authorities to ensure that lower raw material costs are passed through the polyester value chain.
Fibre2Fashion News Desk (KUL)
