The central government has extended the period of customs duty relief on Mono Ethylene Glycol (MEG) and Purified Terephthalic Acid (PTA) until July 15, 2026, based on the demand of the Southern Gujarat Chamber of Commerce and Industry (SGCCI). This decision is expected to provide significant relief to Surat's polyester and man-made fiber (MMF) based textile industry.
The chamber had written to the chairman of the Central Board of Indirect Taxes and Customs (CBIC) on June 24, 2026, requesting an extension of the customs duty relief period for MEG and PTA. Following this, the revenue department of the finance ministry issued notification G.S.R. 529(E), amending the earlier notification number 13/2026-Customs dated April 1, 2026. According to the revised notification, the relief, which was initially applicable until June 30, 2026, will now remain effective until July 15, 2026.
SGCCI noted that due to geopolitical conditions in West Asia, there has been significant volatility in the international prices of crude oil and related products. This has directly impacted the prices of key raw materials MEG and PTA used in the polyester industry. Although there has been some improvement in the international market situation, the expected reduction in the prices of crude-based raw materials in the Indian market has not occurred.
As a result, manufacturing units in the polyester and MMF sectors continue to face additional pressure on production costs. The chamber had urged the central government to extend the customs duty relief period to help industries control raw material costs and remain competitive in both domestic and global markets.
SGCCI believes that this government decision will reduce production costs, alleviate pressure on industries' working capital, and strengthen competitive capacity in the export and domestic markets. The chamber expressed gratitude to the central government, the finance ministry (revenue department), and CBIC for making prompt and positive decisions on industry demands, and stated that it will continue to effectively raise issues related to trade and industry in South Gujarat before the government to protect the interests of industries.
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