Synthetic yarn may get cheaper with anti-dumping duty removal on PTA

While it will improve cost efficiencies in the textile industry, manufacturers of this key raw material may see their margins getting squeezed

Polyester or synthetic yarn could get cheaper with the Union Budget ending the anti-dumping duty on Purified Terephthalic Acid (PTA), a key input. The petrochemical is imported from Iran, China, Indonesia, Malaysia, Korea, Taiwan and Thailand.
 
China has added huge capacity in recent quarters and there is  possibility of cheaper import from there after removal of this duty. The finance minister justified the move as in the public interest and to make it available at competitive prices, for unlocking the textile sector’s portential. India’s PTA demand for domestic purposes is estimated at seven million tonnes (mt) a year. Almost