Heads of all India plastics industry associations said that about 50,000 units of the plastics processing sector are running below 50% of their rated capacity due to rapid increase in raw material prices. He said that if the crisis was prolonged, around 20,000 MSME plastic units would be forced to close.
Industry bodies said that large petrochemical companies, including PSUs, have steadily increased the prices of raw materials by 40–155% in the last 8-9 months. The unions have urged the Center to direct Indian Oil, GAIL, Opel, Haldia Petrochemicals and MRPL to streamline the supply of raw materials at reasonable prices.
Several industry associations have urged the government to ban the export of raw materials for one year and allow import of raw materials produced in the country.
Chandrakant Turkhiya, president of the All India Plastics Manufacturers association, said, “The industry is facing a huge shortage of polymers, with the main raw material for the production of plastic goods.”
“The Chairman of the Governing Council of All India Plastics Manufacturers Association, Arvind Mehta said,” The increase in raw material costs and its rapid decrease in the market are the reasons for the increase in the cost of the project and the cost of MSMEs is adversely impacting the competitiveness. ”