Page 9 - Plastics News July 2019

FROM THE EDITOR'S PEN

The Double Whammy

his month witnessed two major things and I am afraid to say none of them are of much
Thelp to the domestic Plastics Industry

Bubble Plastic material
The state government has amended the Maharashtra Plastic and Thermocol Products
(Manufacture, Usage, Sale, Transport, Handling and Storage) notification 2018. And the
amendment recognises bubble plastic material used for wrapping as an integral part of the
manufacturing industry. Earlier the state had banned this sort of plastic. But with a section of
industry asking for an amendment so that retail businesses dealing in gadgets and readymade
packing materials do not get hampered perhaps this is done.
However, there is a catch as the amendment states that the Bubble plastic material shall be
made up of minimum 20% recyclable plastic material, shall be printed with manufacturer’s
details, type of plastic with code number and buyback price. Also it states that the
manufacturers/manufacturer’s association using bubble plastic material for packaging shall
work together and create a buy-back mechanism and diligently implement their Extended
Producer’s Responsibility (EPR) Plan for 100% integral bubble plastic waste management from
collection to final disposal. Mr. Rajiv B.Tolat
With this new amendment the government has added to the confusion for, till date the
government has not been able to solve the issue of EPR plan for Plastic milk bags and then
how is that it would ensure the EPR for Bubble plastic material. Also this shows the step
motherly treatment meted out to other plastics manufacturers for when Plastic could be
used for wrapping imports then why not the local kind.
Union Budget

The Union Finance Minister Nirmala Sitharaman announced the Union Budget for the year
2019-20 on July 5, 2019 and in her first budget, she has proposed hike in customs duty on 75
imported items to give a push to Make In India programme of the Narendra Modi government.
In order to provide domestic industry a level playing field, basic customs duty is being increased
on items such as cashew kernels, PVC, Vinyl flooring, tiles, metal fittings, mountings for
furniture, auto parts, certain kinds of synthetic rubbers, marble slabs, optical fibre cable,
CCTV camera, IP camera, digital and network video recorders etc.

The Basic Custom Duty (BCD) on PVC is being increased from 7.5 per cent to 10 per cent.
This will definitely affect the industry and as a result all the PVC material / products will be
dearer be it the PVC pipes or automobile parts just to name some.
The list of items on which tariffs have been hiked or introduced is far longer than the list of
tariff reductions. These tariff hikes, which are part of a broader push towards protectionism
and promoting ‘Make in India’, will have important implications for Indian industry and the
economy. Will the protectionists approach serves the purpose of such an exercise remains
to be seen.
Rajiv B.Tolat
Hon. Editor
publication@aipma.net

9 July 2019 Plastics News