“PTA prices have dropped by almost 10 per cent since eruption of the coronavirus epidemic in China. The Indian government’s move to abolish anti-dumping duty has also supported the price decline, apart from the fall in crude oil prices. Prices of other polymers have also declined. Producers were charging us $30-40 a tonne as anti-dumping duty on PTA,” said Madhusudhan Bhageria, Chairman and Managing Director, Filatex India Ltd.
Meanwhile, experts believe the abolition of duty on PTA will boost the profitability of synthetic yarn manufacturers. Demand will rise due to low raw material cost and benefits will be passed on to consumers.
“The abolition of anti-dumping duty on PTA will make its availability to the industry at competitive prices and give a boost to downstream value added product. Additionally, the scheme for remission of duties and taxes on exported products will be launched this year which will refund levies such as electricity duties and value added tax (VAT) on fuel used for transportation. The textile players do not get such refund as of now. Such benefits will certainly go a long way in improving the competitiveness of the textiles products in the export markets,” said K.V.Srinivasan , Chairman, Cotton Textiles Export Promotion Council (Texprocil).
When prices go down, some extra demand gets created. Hence, synthetic textile manufacturers would get benefit of the additional demand which will help boost their profits in coming quarters.
T Rajkumar, Chairman, Confederation of Indian Textile Industry (CITI) believes that if Indian textile industry has to achieve the market size of US$ 350 billion by 2025, it couldn’t have been done by without making our raw material available at an internationally competitive price.
With an installed capacity of around 5 million tonnes, Indian producers including large crude oil refiners utilizes around 80 per cent PTA capacity. China has a production capacity of 45 million tonnes of which 35 million tonnes is consumes locally. The remaining quantity 10 million tonnes is used for exports.