Published on December 9, 2013

Plastic consumption in southern states of India is growing and replacing rubber utilization. This happened because of technological innovation in this industry and that will help in avoiding volatility in rubber prices. Plastic manufacturers association said that there is need to set up Plastic Park for Kerala on the lines of Karnataka to support investment here. The south market has good availability of capable human resources, ensuring organized manufacturing operation for good quality products. This will help to grow both manufacturing and domestic consumption of plastic.

A Plastic Park project is being planned by government in Kannur on 40-acre land with the investment of Rs.2000 crore. Presently plastic parks are planned in Uttar Pradesh, Gujarat, Karnataka and Madhya Pradesh. Companies that are in plastic manufacturing will come to invest in this park according to All India Plastic Manufacturing Association (AIPMA).

Plastic industry players said that in last two years , there input cost has gone up by approx 20% while prices of raw material have increased approx 30% so there profitability has gone down and currently that stands below the return that a bank’s fixed deposit(FD) is giving. They added that there sustainability has become difficult and if this problem is not solved as soon as possible, it would start affecting all players in this industry. Because of lowering order book, appreciation in input costs, uncertainty of raw material and no appreciation in plastic production prices for last two years; this industry is going from very bad faces.