Published on November 9, 2013

According to All India Plastic manufacturing Association Eastern India will be next growth hub for the plastic sector. This region is having strategic growth in near future for both upstream and downstream. Brahmaputra Crackers & Polymer ltd and Assam Gas Cracker project will help to shift focus of the industry to this region. Current per capita consumption for this region is around 2.8 kg against the national average of 8kg.

All plastic manufacturers in India are affected from the import of finished plastic goods. They have urged the government to raise the import duty of imported plastic products for the survival of the industry in India. The All India Plastic Manufacturers Association has urged the government to raise import duty to a minimum 20 percent. This industry comprises over 50,000 units, 90 percent of them are in SME segment and are employing around 4 million workers. Uncontrolled import and other factors are creating questions for the survival of the industry. As the risen prices of Polymers are affecting small and medium scale enterprises, they are facing the shortage of working capital. They have also requested government to decrease duty on all imported raw material to 5% which is currently 7.5%. Another demand of them includes deduction in VAT rates on plastic from 12.5% to 4%.

Recent news said that plastic manufacturers may be slashing their production by 30% this fiscal year due to rising input costs and tighter access to finance. The all India Plastic Association feels that the manufacturer has no room to increase their product prices to oppose the increase in raw material prices. Sources said that some of the small units are near to shut down and due to that non-performing asset for banks will increase. This industry grew at the rate of 14% last year is expected to grow at the rate of 8-10 % this year due to economic downturn.