Textile Sector – Cotton, Jute, Wool, Silk, Handloom, etc.

Purified Terephthalic Acid (PTA)

Note4Students

From UPSC perspective, the following things are important :

Prelims level : PTA and its uses

Mains level : Not Much

  • During her Budget speech, FM Mrs. Sitharaman said that the government was abolishing in “public interest” an anti-dumping duty that was levied on imports of a chemical called PTA.
  • Domestic manufacturers of polyester have called the move a huge relief for the industry, claiming they had been fighting to remove the duty for four-and-a-half years.

What is PTA?

  • Purified Terephthalic Acid (PTA) is a crucial raw material used to make various products, including polyester fabrics.
  • PTA makes up for around 70-80% of a polyester product and is, therefore, important to those involved in the manufacture of man-made fabrics or their components, according to industry executives.
  • This includes products like polyester staple fibre and spun yarn.
  • Our cushions and sofas may have polyester staple fibre fillings. Some sportswear, swimsuits, dresses, trousers, curtains, sofa covers, jackets, car seat covers and bed sheets have a certain proportion of polyester in them.

What led to the government decision?

  • There has been persistent demand that they should be allowed to source that particular product at an affordable rate, even if it means importing it.
  • She had said easy availability of this “critical input” at competitive prices was desirable to unlock “immense” potential in the textile sector, seen as a “significant” employment generator.
  • The duty had meant importers were paying an extra $27-$160 for every 1,000 kg of PTA that they wanted to import from countries like China, Taiwan, Malaysia, Indonesia, Iran, Korea and Thailand.
  • Removing the duty will allow PTA users to source from international markets and may make it as much as $30 per 1,000 kg cheaper than now, according to industry executives.
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