Kolkata: 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, says a press release.
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 MSME’s will have to close down, said the Heads of All India Plastic Industry Associations.
Industry bodies have slammed large petrochemical companies including PSU’s for exponentially increasing their prices without any commensurate in prices of feedstock, pointing out that the prices have soared by 40-155 percent in last 8-10 months. They have also accused large petrochemical companies for creating acute shortage of raw material in the market thus encouraging premium and black-marketing.
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 associations urged the Union Government to ask Public Sector Units to streamline supply of raw materials in adequate quantity to the MSME sector at fair prices.