Page 13 - Plastics News April 2020

1. c. Petroleum prices & dollar rates are volatile and at most 3 months' average
should be considered. 3 months' data shows only 6% downward rates. This
does not warrant any policy change with respect to Custom duty at this
challenging time. Moreover, for eventual V shape recovery predicted for
India, integration to global pricing is highly recommended.

d. Processing industry is already facing the problem of cost management due to
appreciation of Dollar by about 7 percent in last few weeks leading to
increase in import price of polymers.
Minimum Import Price e. Minimum Import Price on Polymer will hurt Plastics processing industry which
on Polymer is already reeling under severe crisis. MIP will lead to increase in price for all
the products which constitute downstream of the value chain. This will have
a severe impact on domestic plastics processing industry catering to local
demand.
Conclusion:

Ÿ We strongly recommend 'NO CHANGE' in Custom Duty on Polymers
Ÿ MIP should 'NOT' be fixed for Polymers.
2. Export Incentives In order to be viable in global market, government must declare very attractive
export incentives. MEIS of around 2-3 percent is likely to be withdrawn and will
be replaced by Remission of Duties or Taxes. However, this is not sufficient.
China has recently increased its declared incentive from 9 to 14 percent.
Operations
3. Forward Contracts Many companies have entered into forward contracts against their export order
with respective bank for supply of goods to their overseas customers. Due to the
current situation, there are chances of delayed shipments or may be
cancellation of orders. In view of the same, we seek extension of time limit for
such contracts for the further period of three months from their due dates if
orders are not canceled. If orders are canceled, forward contract may be
canceled without any charges to exporters. This will enable the exporters to
come out from this critical situation.
4 Salary and Wages of The industry has gone ahead and paid wages to workers and salaries to staff for
workers the month of March 2020. However, the industry and specially MSMEs may not be
able to cope up with the same for the month of April 2020 onwards. Therefore,
we request the Government do its bit. Many countries like Bangladesh and
Canada have already shown the way. ESIC has got a huge reserve to the tune of
Rs. 91000 crores. Similar, there is a huge fund lying in PPF fund. Govt. should at
least pay 50% of the wages and salaries for next 3 months starting April 2020 from
the ESIC and PPF funds.
5. Electricity Charges a. Allow to make payment up to 30.6.2020 for the electricity bills issued during
the period from 1 3.2020 to 30.4 2020 without levy of delayed payment . .
surcharge and without effecting disconnections by Distribution licensees in
the State.

b. Waive the minimum charges i.e Demand / Fixed Charges from the electricity .
bill for the month of March and April 2020 for all Industrial consumers. Only
consumption charges should be recovered from all such consumers during the
month of Marchand April-2020.
c. Extend subsidy of Rs. 2/- per unit on consumption charges from 1.3.2020 to
30.9.2020. This will help the industrial establishments in achieving normalcy
after the lock down is lifted.

APRIL 2020 10 Plastics News