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PU is an exaggerated pronunciation of pew, an interjection that is appropriate when you smell something foul.
Answer by Jakecutter (1819). PU is short for polyurethane. This is a food safe and rubbery textile that is made from a foamy-like plastic. It's a material used for food trays and other products you serve food on. However it doesn't hold up well and can warp when heated in just the hottest of running water.