Sugar-Quiet on Price Front

which is claimed to have been vouchsafed by the financial institutions, rests heavily on the estimate of likely demand of the polymer fibre and yarn industry, the main consumer of DMT. A smaller application of DMT is in the manufacture of polyester resins, in 1980, about 34,000 tonnes or 95 per cent of total consumption of DMT was by the polyester fibre and yarn industry. Output of polyester fibre and yam has grown at an average tutu of approximately 3,500 tpa over the last seven years. The rate of growth has decelerated sharply and in 1979 and 1980 production of polyester fibre in fact declined. However, for assessing the viability of the proposed UNIT project with imported second- band machinery, demand for polyestc fibre alone has been estimated at 60,000 tpa in 1985, as against actual production of 22,650 tonnes in 1980. This assumes an average annua! growth ol 7,500 tpa (32 per cent) between now and 1985. Thus is clearly unreali- s'ie considering the actual growth in the last four years and the fact that several of ihe new licences issued are not likely to fructify in the immediate i uture and that units have been permitted manufacture of polyester via both DMT and PTA. On the basis ofthese fanciful calculations, aggregate demand for DMT in 1985 has been estimated at around 86,000 tpa. IPCL nlreachhas a capacity of 30,000 tp.i and the new project \vi)l have 60,000 :pa. One can imagine the consequent ces tor both IPCL and the new project it the demand projections for DMT do not materialise or if Bongaigaon Refinery decides to implement its DMT licence for 36,000 tpa.