Plastic sector requests Government for streamlined supply of raw materials

Posted by rajaram patil on July 5th, 2021

The plastics processing industry has requested intervention from the Central Government with a view towards streamlining supply of raw materials courtesy of Indian petrochemical firms. They have also asked for free imports of materials which are not manufactured in India. This will help the industry cope with the shortage of supplies while operating in a more efficient manner without numerous units having to down their shutters. The President of the plastic manufacturers association India or AIPMA (All India Plastic Manufacturers Association), Chandrakant Turakhia, has already stated that the industry is facing a serious shortage of polymers which are key raw materials required for producing plastic products.

This has varied applications for nation-building activities, encompassing healthcare, agriculture and the toy and foods segments as per his statement. The sector is looking for Government assistance in ensuring proper supply of raw materials from petrochemical entities along with free imports of materials not produced here, as mentioned. Close to 50,000 units in the country were functioning at lower than 50% of capacity as per last reports in the country. These employ close to a whopping 50 lakh people as employees as per Turakhia. He has also added that the crisis will ultimately lead to thousands of micro, small and medium enterprises (MSMEs) unfortunately closing down.

AIPMA has various associations inclusive of leading names like the All India Plastics Manufacturers Association, Plastic Export Promotion Council, Organization of Plastics Processors of India, Indian Plastics Federation-Kolkata, Gujarat State Plastics Manufacturers Association, Karnataka State Plastics Association, Kerala Plastics Manufacturers Association, Maharashtra Plastics Manufacturers Association, Canara Plastic Manufacturers and Traders Association and Telangana and Andhra Pradesh Manufacturers Association. The AIPMA Chairman of the Governing Council, Arvind Mehta, has previously stated that increase in costs of raw materials and the shortage in several markets will lead to more escalation for costs of various projects. This will naturally negatively impact competitiveness of MSME players in terms of costs. All associations have requested the Central Government to direct PSUs including GAIL, MRPL, Haldia Petrochemicals, OPAL and Indian Oil Corporation to ensure streamlined supply at fair and competitive rates.