MANTRA Report Seeks Transparency in Polyester Pricing

SURAT: Amid growing concern over rising polyester yarn prices, Surat-based Man-Made Textiles Research Association (MANTRA) has prepared a detailed technical report examining the forces driving Polyester MELT price dynamics and their impact on the wider man-made textile industry.

The report, prepared by MANTRA Director Dr. Pankaj Gandhi following a request from the Southern Gujarat Chamber of Commerce & Industry (SGCCI), seeks to bring scientific clarity to the relationship between crude oil, polyester raw materials and yarn prices.

A key finding is that Polyester MELT does not have a direct one-to-one correlation with crude oil prices. Instead, crude oil affects MELT prices indirectly through the petrochemical chain, including PTA (Purified Terephthalic Acid) and MEG (Mono Ethylene Glycol), which are polymerised to produce polyester.

According to the report, production of one kg of polyester involves approximately 0.86 kg of PTA and 0.33 kg of MEG, with the remaining component accounting for processing factors and losses.

Dr. Gandhi said the report was prepared as an independent technical assessment. “The objective is to establish a technically sound basis for understanding the relationship between crude oil, PTA, MEG, Polyester MELT and yarn prices, while providing a constructive framework for greater transparency,” he said.

MANTRA has recommended a benchmark-based Polyester Raw-Material Price Monitoring System instead of an arbitrary fixed MELT-price formula. The proposed mechanism could track international PTA and MEG prices along with exchange rates, energy and conversion costs, freight, financing, import parity and market conditions.

The report also maps how raw-material price movements travel through the textile chain—from MELT to POY/FDY, DTY, fabric, garments, home textiles and technical textiles—potentially affecting costs and competitiveness across the sector.

On import duties, MANTRA has suggested that the government could consider continuation or reduction of basic customs duty on PTA and MEG, particularly when domestic availability is inadequate, to support downstream competitiveness and supply security.

The report has also cautioned against treating isolated cost or price-difference figures as universal industry benchmarks without validating original data.

MANTRA said its findings could serve as technical input for further discussions involving the Ministry of Textiles, industry bodies and other stakeholders on raw-material transparency, supply security and the competitiveness of India’s man-made textile sector.