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The plastics processing sector, which produces plastic products for food processing, agriculture, toys, healthcare, pharmaceuticals, automotive, infrastructure and consumer sectors, as well as micro, small and medium enterprises, are facing a severe shortage of raw materials that could lead to the closure of thousands of units across India
.
According to the head of the All India Plastics Industry Association (including the All India Plastics Manufacturers Association), there are about fifty thousand units in the plastics processing industry that provide employment for about fifty million workers across the country, and these units are already operating at a rate below their rated 50% of capacity, thousands of micro and small and medium businesses will have to close if the crisis continues
.
Industry bodies have slammed big petrochemical companies, including PSU, for multiplying prices without any commensurate with feedstock prices, noting that prices have surged 40%-155% over the past 8-10 months
.
They also accuse major petrochemical companies of creating a severe shortage of raw materials on the market, thereby encouraging premiums and black market sales
.
The plastics processing industry has sought immediate government intervention to secure raw material supply for Indian petrochemical companies and free import of non-domestic produced raw materials
.
Chandrakant Turakhia, chairman of the All India Plastics Manufacturers Association, said: "The industry is facing aIn severe shortages, polymers are the main raw material for the production of plastic products, and it has different applications in nation-building, including agriculture, healthcare, the food sector, and the toy sector
.
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"The increase in raw material cost and its severe shortage in the market has led to rising project costs and adversely impacted the cost competitiveness of
MSMEs," said Mr Arvind Mehta, Chairman, Council of All India Plastics Manufacturers Association
.
Arvind Mehta, who is also chairman of the Plastics Export Promotion Council, said: "Exports of finished products are declining as domestic polymer prices are significantly higher than in competing countries, and if this price hike continues, India's exports of plastic products are expected to increase significantly.
down as Indian manufacturers will not be able to meet global order commitments
.
"The agricultural sector is expected to be hit hard due to the impact of the raw material crisis on the prices of plastic pipes, drip irrigation systems, water tanks, mulch and woven bags," said Mr Mahendra Sanghvi, chairman of the Indian Plastics Processors Organization
.
"Toy makers who use plastic for parts and packaging are frustrated due to sudden price hikes and lack of access to raw materials," said Mr Shailesh Patel, chairman of the Gujarat Plastics Manufacturers Association
.
"The impact of rising raw material prices is expected to hit consumers hard amid the Covid-19 pandemic as their incomes have already been affected," said Mr Ramesh Kumar Rateria, Chairman of the Indian Plastics Federation, Kolkata
.
The association urges the Union government to ask the public sector units i.
e.
Oil India, GAIL, OPAL, Haldia Petrochemicals, MRPL to streamline the raw material supply process to produce enough material to supply the MSME sector at fair prices
.
As the price of polymer raw materials has hit MSMEs very hard, some industry associations have urged the government to ban the export of raw materials for at least a year
.
