Indian market: the price of polymer raw materials has risen sharply

The plastic processing sectors that produce plastic products for food processing, agriculture, toys, health care, pharmaceuticals, automobiles, infrastructure and consumer sectors, as well as small, medium and micro enterprises, are facing severe raw material shortages, which may result in the closure of thousands of units across India.

The head of the All India Plastics Industry Association (including the All India Plastic Manufacturers Association) stated that there are about 50,000 units in the plastics processing industry that provide employment opportunities for about 50 million workers across the country. The operation rate of these units has been lower than their rated rate. 50% of production capacity. If the crisis continues, thousands of micro, small and medium enterprises will have to shut down. All India Plastics Industry Association includes: Indian Plastics Processors Organization, Plastic Export Promotion Committee, Gujarat Plastic Manufacturers Association, Indian Plastics Federation-Kolkata, Karnataka Plastics Association, Maharashtra Plastics Manufacturers Association , Kerala Plastic Manufacturers Association, Telangana and Andhra Pradesh Plastic Manufacturers Association, and Canara Plastic Manufacturers and Traders Association.

Industry organizations have criticized large petrochemical companies, including PSU, for raising prices exponentially without any corresponding price of raw materials, and pointed out that prices have soared by 40%-155% in the past 8-10 months.

They also accused the large petrochemical companies of severe shortages of raw materials in the market, thus encouraging premium prices and black market sales.

The plastics processing industry has sought immediate government intervention to ensure the supply of raw materials for Indian petrochemical companies and freely import non-domestic raw materials.

Chandrakant Turakhia, Chairman of the All India Plastic Manufacturers Association, said: "The industry is facing a serious shortage of polymers. Polymers are the main raw material for the production of plastic products. They have different applications in national construction, including agriculture, healthcare, and food. Department and toy department."

"The increase in the cost of raw materials and their severe shortage in the market has led to an increase in project costs and adversely affected the cost competitiveness of small, medium and micro enterprises." said Mr. Arvind Mehta, Chairman of the All India Plastic Manufacturers Association Council.

Arvind Mehta is also chairman of the Plastics Export Promotion Committee. He said: "The export of finished products is declining because domestic polymer prices are much higher than competing countries. If this price increase continues, it is expected that India’s exports of plastic products will be substantially increased. Decline because Indian manufacturers will not be able to fulfill global order commitments."

Mr. Mahendra Sanghvi, Chairman of the Plastic Processors Organization of India, said: "Due to the impact of the raw material crisis on the prices of plastic pipes, drip irrigation systems, water tanks, cover films and woven bags, the agricultural sector is expected to be hit hard.

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Mr. Shailesh Patel, Chairman of the Gujarat Plastic Manufacturers Association, said: "Due to the sudden price increase and the inability to obtain raw materials, toy manufacturers who use plastic to make parts and packaging are frustrated."

Mr. Ramesh Kumar Rateria, Chairman of the Indian Plastics Federation of Kolkata, said: "The impact of rising raw material prices is expected to hit consumers severely in the new crown epidemic because their income has been affected."

The association urges the coalition government to require public sector units, namely Indian Petroleum, GAIL, OPAL, Haldia Petrochemical, and MRPL to simplify the raw material supply process and produce enough materials to the small, medium and micro enterprise sector at a fair price.

Because the price of polymer raw materials has caused a very serious blow to small, medium and micro enterprises, some industry associations have urged the government to ban the export of raw materials for at least one year.