Page 9 - Plastics News March 2021

FROM THE EDITOR'S PEN

Where Are We Heading To?

n the earlier issue we had discussed about the increasing prices of raw materials and how the
Ifiscal budget failed to consider the industry’s suggestion for reduction in customs’ duty on
plastic raw materials along with the higher duties on Finished Plastics goods. Needless to say
lowering the Naphtha custom duty would have helped the production of plastic raw materials.
As we all know, the plastic processing industry has been facing tough times with the cost of
raw materials skyrocketing over the last few months. The increase in raw material costs and
its acute shortage is leading to escalation in project costs and is adversely impacting the cost
competitiveness of MSME’s. Most of the MSME’s are already operating below 50 per cent of
their rated capacity and if the problem continues then the future of over 50,000 plastics
processing units employing about fifty lakh workers in the country is at stake.
However, the government fails to hear the plea of Plastics processing sector who have
been complaining over a month now about the acute shortage of raw material (created
artificially?) given the exponential price hike 40- 155 percent in last 8-10 months. If sources
are to be believed there has been black marketing of raw materials and thus large Petrochem
are Profiteering taking an undue advantage, which is very unfortunate and should have not Mr. Rajiv B.Tolat
happened. Team AIPMA has been following the case and has sought immediate intervention
of the government to ensure adequate supply of raw material from petrochemical companies,
ban export of raw material, at least, for a year and allow free imports of raw material that
are not produced in the country as well.

As if this was not enough the central government, on last fortnight, issued a draft notification
approving a new law for the use of Plastic across the country. Among many provisions, the
centre has modified the provision of ‘Single-use plastic’, Thermoset Plastic, Thermoplastic,
Non-woven plastic bag, Plastic waste processing. The Union ministry has proposed increasing
the thickness of carry bags made of virgin plastic to 120 microns from 50 microns. The new
law will be implemented from January 1, 2022 by July 2022 manufacture, import, stocking,
distribution, sale and use of all single-use plastic commodities will be prohibited under
amended rules.

As the draft is open for public suggestion for 60 days for consideration by the central
government, following which it will be published in the Gazette of India, we at AIPMA shall
gothrough the new said Plastic Waste Management (Amendment) Rules, 2021, and make
appropriate representation to the government for the betterment of the industry.

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

9 March 2021 Plastics News