Page 10 - Plastics News March 2021

AipmA At work

AIPMA Takes Steps Against Sharp Rise In Polymer Raw Material Prices

lastics processing sector producing plastics goods costs and is adversely impacting the cost competitiveness
Pfor Food processing, agriculture, Toys, Healthcare, of MSMEs,” said Mr. Arvind Mehta, Chairman, Governing
Pharma, Automotive, infrastructure and consumer Council of The All India Plastics Manufacturers Association.
segments and belonging to micro small and medium “Exports of finished products are falling as polymer
enterprises sector are facing acute raw material shortage prices in country are substantially higher than competing
that may lead to the closure of several thousand units countries and if this situation of price increase continues,
across the country. export of plastics goods from India is expected to take
a nose dive as Indian manufacturers would fail to meet
Around 50000 units in the plastics processing sector that
offer employment to about fifty lakh workers in the global order commitments” said Mr. Arvind Goenka,
country are already operating below 50 per cent of their Chairman of Plastic Export Promotion Council.
rated capacity, and if the crisis prolongs, then thousands “Farm sector is expected to be hit hard due to impact of
of MSME’s will have to close down, said the Heads of All raw material crisis on prices of Plastic pipes, drip irrigation
India Plastic Industry Associations that includes The All system, water tanks, mulch films and woven sacks”
India Plastics Manufacturers Association, Organization said Mr. Mahendra Sanghvi, President of Organization of
of Plastics Processors of India, Plastic Export Promotion Plastics Processors of India “Toy makers using plastic for
Council, Gujarat State Plastics Manufacturers Association components and packaging are at dismay due to sudden
, Indian Plastics Federation-Kolkata, Karnataka State price rise and unavailability of raw materials” said
Plastics Association, Maharashtra Plastics Manufacturers Mr. Shailesh Patel, President of Gujarat State Plastics
Association, Kerala Plastics Manufacturers Association, Manufacturers Association “Impact of rising price of raw
Telangana and Andhra Plastics Manufacturers Association material is expected to hit consumers hard in this Corona
and Canara Plastic Manufacturers & Traders Association. times when their income is already under cloud” said
Mr. Ramesh Kumar Rateria, President of Indian Plastics
Industry bodies have slammed large petrochemical
companies including PSU’s for exponentially increasing Federation, Kolkata. The associations urged the Union
their prices without any commensurate in prices of government to ask Public Sector Units I.e. Indian Oil,
feedstock, pointing out that the prices have soared by 40- GAIL, OPAL, Haldia Petrochemicals, MRPL to streamline
155 percent in last 8-10 months. They have also accused supply of raw materials in adequate quantity to the MSME
large petrochemical companies for creating acute shortage sector at fair prices.
of raw material in the market thus encouraging premium As the polymer raw material prices have very badly hit
and black-marketing. Micro, Small and Medium Enterprises (MSME), several
industry associations have urged the government to ban
The plastics processing sector has sought immediate
government intervention to ensure raw material supply the export of raw material for at least one year.’
by Indian petrochemical companies and
free imports of raw material that are not
produced in the country.
"The industry is facing acute shortage
of polymers, the main raw material for
plastics goods production, which has varied
application in nation-building including
Agriculture, Healthcare, Food sector
and Toy sector" Said Mr. Chandrakant
Turakhia – President of The All India Plastics
Manufacturers Association. “The increase in
raw material costs and its acute shortage in
market is leading to escalation in project

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