Surat: The Southern Gujarat Chamber of Commerce and Industry (SGCCI) on Tuesday welcomed the Centre’s decision to extend the customs duty exemption on Mono Ethylene Glycol (MEG) and Purified Terephthalic Acid (PTA) — key raw materials used in the polyester and man-made fibre (MMF) industry — by another 15 days.On June 24, the chamber submitted a representation to the Chairperson of the Central Board of Indirect Taxes and Customs (CBIC), urging the govt to extend the existing customs duty relief on MEG and PTA. SGCCI highlighted the continued cost pressures faced by domestic textile manufacturers, particularly those dependent on polyester- and MMF-based inputs.The Ministry of Finance’s Department of Revenue issued a notification amending its earlier notification dated April 1. Under the revised notification, the customs duty exemption, which was scheduled to expire on June 30, has now been extended until July 15.SGCCI said geopolitical tensions and political developments in West Asia triggered sharp volatility in global crude oil and derivative markets, leading to a significant rise in international prices of MEG and PTA.The chamber said the extension would provide much-needed relief to the textile industry, particularly Surat’s large polyester and MMF manufacturing cluster, by helping reduce raw material costs, easing working capital pressures and improving the competitiveness of Indian textile products in both domestic and export markets.
