Indian polyester staple fiber producers can expect better supply of raw materials as imports of PET flake chipshave been eased.

Concerns were raised about the tight supply of used PET bottles and its downstream products. The PET flake chip can be imported under authorisation from the Director General of Foreign Trade and subject to a NOC from the ministry of environment. A unit will be eligible for import only if it has used domestic waste to the extent of at least 70 per cent of the capacity in the previous year. The unit can import up to 20 per cent of its production in 2021 to 2022. Thereafter it will be able to import only 15 per cent of the actual capacity utilised in the preceding year. An additional import of up to ten per cent may be considered against exports of the products. But units would be eligible for imports after at least one year of production.

Earlier imports of PET bottle waste/scrap/PET flake made from used PET bottles were totally restricted with a view to controlling dumping of scrap.Earlier, India generated thousands of tons of used PET bottles for reuse. The technological developments increased its consumption and today the supply has become tighter for the polyester value chain.