Page 9 - Plastics News April 2021

FROM THE EDITOR'S PEN

Stitch in Time Saves Nine

ndia consists of a large unorganised sector with 94% of the employment and 45% of the output.
IThis sector was the worst hit since it works with small amounts of capital, has low wages and
little savings. Stoppage of incomes due to lockdown even for a few days is disastrous. Millions
of people migrated from cities to the villages they had come from. This kind of movement
was not seen earlier in any other major economy.
Electricians, carpenters, plumbers, masons, tailors, gardeners, along with unskilled workers
at factories all in the informal sector, are among the worst hit and are finding it difficult to
make both the ends meet thus leaving away the city. The plastic industry is no different that
employs over lakhs of unskilled labour.

According to BMC officials around 30 % of total factories in the city have shut and workers
have left even before the last weekend lockdown.

For Micro, Small and Medium Enterprises (MSMEs), increase in material cost and a cash crunch
are two immediate worries. K Nandakumar, chairman MSME (western region), Confederation
of Indian Industry, said at least 50% of the manufacturing sector is operational in the state. Of
the 64 million MSMEs, 99% are micro and they cater to large industries in a 1-5 km periphery. Mr. Rajiv B.Tolat
Travelling is not an issue as company ID is sufficient. The government has even done away
with travel passes.
However with the kind of uncertainty looming over, all manufacturing units and large
industries will see a material increase in cost as well as a cash crunch as units need to provide
accommodation for workers. Last year was bad. Now there will be some disruption of the
supply chain as it is not just transport but loading and unloading of goods and raw materials
which involves people and there may not be enough personnel. Besides, one Covid- positive
person can lead to a unit being shut.
I think despite the state government handling the crisis the outcome is yet not desirable and
it’s time for ensuring self regulation among the citizens. One should avoid crowds - especially
in markets, commuting; be it local trains and / or bus / and remain at home. Reducing human
contact now with ‘Break the chain’ is easier said than done, however, it is better late than never.
Traversing through a year of adverse conditions, the sector has honed its survival capabilities.
The industry has learnt some very hard lessons from one of the most challenging years in
decades and built resilience, but the fresh restrictions being imposed by states in the wake
of rising Covid cases are bound to test them again. Much now hinges on how the Covid surge
can be tackled with adherence to safety protocols and an aggressive vaccination drive so that
the economy, which is on a fragile road to recovery, does not get derailed again.

Rajiv B.Tolat
Hon. Editor
publication@aipma.net

9 April 2021 Plastics News