Page 7 - Plastics News December 2019

THE PRESIDENT
THE PRESIDENT SAYS SAYS

Perhaps a Passing Phase...

his year has perceived a lot of changes in regards to the plastic industry. Ranging from the
Tgovernment’s policies and campaign on phasing out single use plastics, definition of single
use plastic, proposals on the changing import duties etc. The plastic processing industry is
going through a tough phase.
Most recently, the FICCI National Petrochemical Committee had drafted a proposal to revise the
basic custom duty on various polymers from the current 7.5% to 12.5%. There was an another
proposal by India Chemical Council to government to increase the import duty on raw material.
AIPMA therefore organized an ‘Emergency All India Plastics Association Meet’ on the 9th December
in Mumbai to discuss and deliberate on the draft proposal. The ‘All India Plastics Association Meet’
was attended by more than 70 participants representing 30 industry associations from across the
country, industry champions and key stakeholders. The industry demanded that the import duty
on major raw material should be retained at 7.5%. Industry also asked government to roll back
import duty on PVC from 10% to 7.5%. Moreover, the delta of 10% should be maintained between
the customs tariff of raw material and plastics finished goods in order to give boost to plastics
processing industry which has average spare capacity of around 50%. Government of India is planning JAGAT KILLAWALA
to make Indian quality standards mandatory on raw material as well as finished goods. Fearing
demand supply gap and subsequent escalation of cost of raw material, Industry has demanded
that the BIS standards should not be made mandatory on raw material. AIPMA has also asked
government to restrain from making BIS standards mandatory for finished goods as it will increase
compliance burden and increase the cost of production thus adversely affecting competitiveness.
Significant amount of finished goods is being imported at zero or highly concessional duty from
countries having ‘Free Trade agreements’ with India. We have asked Government that the plastics
finished products should be excluded from any tariff reduction under operational and proposed
FTAs to limit the damage caused to domestic industry by preferential imports. AIPMA is closely
working with Government of India on Technology Upgradation Fund scheme for plastics sector.
Within the proposed scheme, we have sought 15% Capital Investment Subsidy on high technology
machines and reimbursement of 5% on the interest charged by the lending agency on a project of
technology upgradation. The TUF Scheme would help the industry to face global competition with
focus on balanced development across the value chain by addressing the issues of fragmentation
and promoting forward integration.
I personally believe that the Plastic Industry is one of the major contributors to the Indian economy
and is expected to play a key role in India becoming US $5 Trillion Economy. It is further reiterated
that Government should engage strongly with the industry to ideate and implement impactful
policy solutions for higher growth.
AIPMA recently attended the 50th meeting of the Council of International Plastics Associations
Directors (CIPAD) in London, UK. It was an excellent opportunity for Indian plastics industry as the
International Forum facilitated meeting of global Industry Associations leaders wherein country
papers were presented and ideas were exchanged. 14 countries including India, UK, Italy, China,
Germany, Mexico etc. participated in this key forum.
In order to familiarize the students about positive aspects of plastics & looking at the need of
the hour, AIPMA recently organized the 3rd National Essay Contest for the students of class IXth
& Xth on subjects like “Plastic-The Wonder Material”, “IMAGINE A day without plastic”, “Plastic-
Beyond imagination” & “Plastic- Littering and Waste Management”. More than 2200 entries have
been received out of which 12 students were selected as winners and would be awarded at 11th
Plastivision India 2020.
Jagat Killawala
president@aipma.net

7 December 2019 Plastics News