Polyester Fibre Units Oppose Pta Dumping Duty

In a veiled attack on Reliance Industries, the sole manufacturer of purified terephthalic acid (PTA) in the country, polyester fibre makers have opposed the governments move to levy anti-dumping duty on PTA imported from Korea, Thailand and Indonesia. They plan to take up the matter with the finance ministry in the next few days.

Preliminary findings of the commerce ministrys anti-dumping cell are out and purified terephthalic acid manufacturers in the accused countries have been given 40 days to file a reply. Meanwhile, moves are afoot to levy an interim duty.

No anti-dumping duty should be levied unless we are heard and relevant data is examined, JCT chairman & managing director Samir Thapar said at a press conference in new Delhi yesterday.

In a thinly-veiled charge of irregularity, polyester makers yesterday said the anti-dumping investigation into import of purified terephthalic acid was based on data pertaining to dimethyl terephthalate (DMT).

Both purified terephthalic acid and DMT are vital raw materials for manufacture of polyester yarn, but the two are chemically different.

While admitting this, the preliminary findings of the anti-dumping cell go on to dub them like products on the ground that DMT has been technically and commercially substituted by PTA.

Besides, while Indonesian manufacturers have been asked to furnish data, the figures of Reliance have not been taken into account, said O P Lohia of Indo Rama Synthetics.

Calling the government move as too hasty and ill conceived, Lohia pointed out that India had one of the highest duty structures (27 per cent) on PTA, against 15-17 per cent in China and zero in Taiwan. Intermediate players (PTA manufacturers) are large global players that need no protection. The user industry is the one that needs protection, he said.

The application seeking an anti-dumping duty on PTA was filed by Reliance Industries and Bombay Dyeing on December 20, 1996. Investigations were initiated on the same day.

This promptness had raised eyebrows in the industry. This kind of promptness was not seen in other such cases, said Thapar.

Against this, it is pertinent to mention that petitions for PSF and PET were filed on March 1997 and February 3, 1997, respectively. So far the anti-dumping cell has not notified the initiation of investigation on these petitions, the manufacturers said in a statement yesterday.

India currently imports 2-3 lakh tonnes of purified terephthalic acid every year while the domestic production is 6 lakh tonnes.