Chennai: Plastics processing sector producing plastics goods for food processing, agriculture, toys, healthcare, pharma, automotive, infrastructure and consumer segments and belonging to micro small and medium enterprises sector are facing acute raw material shortage that may lead to the closure of several thousand units across the country.
A press release said, around 50000 units in the plastics processing sector that offer employment to about fifty lakh workers in the country are already operating below 50 per cent of their rated capacity, and if the crisis prolongs, then thousands of MSMEs will have to close down, said the Heads of All India Plastic Industry Associations.
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.
“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 sector and Toy sector,” said Chandrakant Turakhia ā president of The All India Plastics Manufacturers 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,” said Arvind Mehta, chairman, Governing Council of The All India Plastics Manufacturers Association.
“Farm sector is expected to be hit hard due to impact of raw material crisis on prices of Plastic pipes, drip irrigation system, water tanks, mulch films and woven sacks,” said Mahendra Sanghvi, president of Organisation of Plastics Processors of India
The associations urged the Union government to ask Public Sector Units I.e. Indian Oil, GAIL, OPAL, Haldia Petrochemicals, MRPL to streamline supply of raw materials in adequate quantity to the MSME sector at fair prices.