Domestic manufacturers allege steep price undercutting; Reliance and Wellknown Polyester lead petition

The Directorate General of Trade Remedies (DGTR) has initiated an anti-dumping investigation into imports of Polyester Textured Yarn (PTY) from China, following complaints from India’s largest polyester manufacturers that Chinese exporters are causing material injury to the domestic industry through aggressive underpricing.

The petition was jointly filed by Reliance Industries Ltd and Wellknown Polyester Ltd., with support from leading players including Filatex India, Garden Silk Mills, Indorama Synthetics, Sanathan Textiles and others. The applicants claim that imports from China have surged sharply during the 15-month period of investigation (April 2024 – June 2025), both in absolute volume and market share.

In its initiation notice, the DGTR stated that preliminary comparisons of normal value and export price indicate that Chinese exporters are selling PTY in India at prices well below fair value, resulting in dumping margins above the legally permissible threshold.

The authority added that it found prima facie evidence that these low-priced imports have depressed domestic prices, caused heavy financial losses for Indian producers, led to negative returns on capital employed and triggered cash losses and operational stress across the Indian polyester yarn value chain.

According to the petitioners, domestic manufacturers have been forced to slash prices to compete with Chinese imports, leading to sustained erosion of profitability. The data submitted shows that despite stable demand, Indian mills are losing market share due to low-priced shipments from China.

The probe covers Polyester Textured Yarn (DTY), a key raw material for fabrics used in apparel, home textiles, automotive textiles and furnishings. PTY made from polymers other than PET (such as nylon or polypropylene) is excluded from the scope.

Given China’s contested market economy status in trade remedy investigations, the petitioners have argued that normal value should be determined using third-country pricing. The DGTR has, at this stage, relied on Singapore-to-India PTY export data to benchmark fair pricing.

The DGTR will now send questionnaires to Chinese exporters, the Chinese government and Indian importers. All stakeholders have been asked to submit responses within the prescribed timelines.

If the investigation confirms injury and establishes a causal link, India may impose anti-dumping duties aimed at restoring fair competition and safeguarding domestic producers.

The move is expected to have significant implications for India’s synthetic yarn supply chain, apparel manufacturers and downstream textile exporters who rely heavily on imported PTY.