Duty-Free PTA, MEG Relief a Positive Step, Says NITMA; Flags FTA Anomaly
April 6, 2026
Ikramudin / Ludhiana
The Northern India Textile Mills’ Association (NITMA) on Sunday welcomed the Central Government’s decision to make PTA and MEG duty-free till June 30, 2026, calling it a major relief for the domestic Man-Made Fiber (MMF) sector amid continuing global supply disruptions. At the same time, the association urged the Centre to correct what it described as a long-pending “inverted duty structure” under the India-ASEAN Free Trade Agreement (FTA) that has hurt Indian spinning mills for years.
NITMA President Sidharth Khanna said the removal of Customs Duty on Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG) would help the textile industry tackle rising cost pressures and raw material uncertainty caused by disturbances in West Asian supply chains.
He thanked Prime Minister Narendra Modi, Union Minister J.P. Nadda, and Textiles Minister Giriraj Singh for the decision, and said the government should consider extending the duty-free window beyond June 30 if international market instability continues.
Khanna said PTA and MEG are key raw materials used to manufacture Polyester Staple Fibre (PSF), and added that domestic producers have already been facing a severe cost disadvantage for more than a decade. According to him, this has weakened the competitiveness of Indian manufacturers against global players.
He said the bigger concern for the industry remains the inverted duty structure under the current India-ASEAN FTA. At present, PSF attracts a 5.5 per cent import duty, while finished Polyester Spun Yarn (PSY) enters India duty-free, creating an uneven playing field for local spinning mills.
Khanna said this policy anomaly has penalised domestic manufacturers by making imported finished products cheaper than locally produced intermediate material, thereby affecting the entire textile value chain.
With the ASEAN–India Trade in Goods Agreement (AITIGA) currently under review, NITMA has formally asked the Ministries of Commerce and Textiles to address the issue and ensure equal treatment for both PSF and PSY.
The association said the government should either include both products under duty exemptions or exclude both from such benefits to restore parity and support the “Make in India” vision.
NITMA expressed confidence that the Centre would take corrective steps to resolve the long-standing issue and provide a level playing field to the domestic textile industry.
NITMA Northern India Textile Mills Association Sidharth Khanna PTA Duty Free MEG Duty Free India ASEAN FTA AITIGA Review Inverted Duty Structure
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