Indian Plastic Producers Urge Government Intervention to Survive the Exponential Rise in Feedstock Prices
- 02-Dec-2020 3:00 PM
- Journalist: Francis Stokes
Acknowledging the serious financial and operational damage to the plastic processing industry, the All India Plastics Manufacturers Association (AIPMA) has issued an appeal to the government alleging against the unprecedented hike in prices of several plastic feedstocks.
The association stressed the fact that subdued downstream demand has left no room for industries to take any positive revision in prices of final products. Thus, the continuous increment in prices of raw material has menaced the operations in the Indian plastic processing plants. Prime raw materials that have showcased unprecedented surge in cost include High-Density Polyethylene (HDPE), Polyvinyl Chloride (PVC), Linear Low-Density Polyethylene (LLDPE), Polypropylene (PP) and Acrylonitrile Butadiene Styrene (ABS). AIPMA also claimed that domestic producers have increased their export potential which has led to an abrupt shortage of material in the domestic market. As per the abbreviated fact, Polypropylene exports have showcased a total increment by around 94 percent in January-August in comparison to the previous financial year.
The present situation where the overall manufacturing cost has skyrocketed has made the domestic downstream industries less competitive in the export market where the cost of the final products is less by at least 10 to 15 percent. Hence AIPMA had plead the government and overall petrochemical regulatory authority to investigate against the skyrocketing prices and any other unofficial potential gains. It also urged the government to put an end to anti-dumping duty on the proclaimed feedstocks and thoroughly check into the abundant exports from the domestic market.
As per ChemAnalyst, “comprehending the reduced offers and import shortage prevailing from container unavailability, prices of Polymer feedstock are expected to further rise in Southeast Asia till the first quarter of 2021. Any relief is only possible with a major step by the domestic government and after an end to the container shortage in overall Southeast Asia”.
