Plastic industry urges government to streamline raw material supply

The plastics processing sector has sought immediate government intervention to ensure raw material supply by Indian petrochemical companies

Mumbai: Plastics processing sector have urged the government to streamline the supply of raw materials as the industry is grappling with raw material shortage which will lead to the closure of many units across 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 and toy sector,” All India Plastics Manufacturers Association (AIPMA) President Chandrakant Turakhia said in a statement.

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The plastics processing sector has sought immediate government intervention to ensure raw material supply by Indian petrochemical companies and free imports of raw material that are not produced in the country.

Around 50,000 units in the plastics processing sector, which offer employment to about 50 lakh workers in the country, are already operating below 50 per cent of their capacity, Turakhia said adding that if the crisis prolongs, then thousands of MSME’s will have to close down.

All India Plastic Industry Associations includes All India Plastics Manufacturers Association, Organization of Plastics Processors of India, Plastic Export Promotion Council, Gujarat State Plastics Manufacturers Association, Indian Plastics Federation-Kolkata, Karnataka State Plastics Association, Maharashtra Plastics Manufacturers Association, Kerala Plastics Manufacturers Association, Telangana and Andhra Plastics Manufacturers Association and Canara Plastic Manufacturers and Traders Association.

“The increase in raw material costs and its acute shortage in market is leading to escalation in project costs and is adversely impacting the cost competitiveness of MSMEs,” AIPMA Chairman, Governing Council, Arvind Mehta noted.

The associations urged the government to ask Public Sector Units, including Indian Oil Corporation, GAIL, OPAL, Haldia Petrochemicals, MRPL to streamline supply of raw materials in adequate quantity to the MSME sector at fair prices.