PTA imports to India, presently originate and facilitated from China, European Union (EU) Korea and Thailand to help domestic industry in small and medium sized category to tide over its shortage to enable them manufacture of polyester staple fiber, polyester filament yarn, polyester film and other value added products.
In a representation sent out to the government by the Executive Director of the Chamber Mr. Saurabh Sanyal, it has been highlighted that the domestic producers of PTA are acting in an unreasonable manner to put additional burden on the user industry with the sole objective of earning super normal profits on the product, seeking to impose anti-dumping measures on it at the cost of small and medium sized enterprises which is not fair.
He explained that the PTA is one of the major raw materials for production of Polyester Chips which in turn is used to produce Polyester Filament Yarn, Polyester Staple Fibre and Polyester Film. To produce 1 kg of Polyester staple fibre 0.92 kg of PTA is required and to produce 1 kg of Polyester chips 0.8583 kg of PTA is required.
The representation of the PHD Chamber also points out that Polyester Filament Yarn, Polyester Staple Fibre and Synthetic Textiles form core of the exports from India. Further, Indian polyester Staple Fibre is already facing anti-subsidy investigation in European Union vide initiation notice (2013/C372/12) dated December 19, 2013. Egypt has initiated anti dumping investigations vide notice no. (9) published in their official Gazette no.292 supplementary (A) on December 24, 2013.
The imports of PTA did not cause any injury as claimed by some of the players who want anti-dumping measures on PTA imports. Even the leading company such as Indian Oil Corporation does not seek anti-dumping duty on PTA imports. The Chamber, therefore, is of the view that in view of substantial demand supply mis-match of PTA, any anti-dumping measure on it would prove injurious to domestic industry and thus, the idea to impose trade barriers on PTA imports should not be entertained by the government.
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