Plastic processors want government to check input prices

June 12th, 2008 - 11:55 pm ICT by IANS  


Kolkata, June 12 (IANS) The Indian Plastics Federation Thursday said it would submit a memorandum to the central and state governments Friday, seeking steps to arrest the rise in prices of various grades of plastic granules. Federation presdient K.K. Seksaria said: “During the last three and a half months since the presentation of the union budget, the prices of various grades of plastic granules have gone up by 30 percent to 50 percent, causing hardships to the domestic, small and medium plastic processing units, who are unable to pass on the increase to their customers.”

The federation will put forward its grievances and suggestions to the governments and consider raising prices of processed plastic products if its pleas remained unheard.

“The abnormal increase in the prices of plastic articles and irregular supply of the same is bound to add to the spiralling inflation,” Seksaria added.

He blamed price speculations by big players like GAIL, Reliance Petroleum and Haldia Petrochemicals Limited (HPL) for the price volatality and inadequate supply of input materials in plastic processing units.

Seksaria said the big players were exporting raw materials at a higher price and thereby creating scarcity in the domestic market.

“These companies are meeting international demands but in domestic market due to the scarcity they are charging premium while selling the products,” he said.

The federation would request the central government to form a regulatory authority to curb the monopolistic trade practices by the big companies.

It would also request the centre to impose export duty on plastic materials, if necessary, so as to increase the domestic supply.

HPL in a statement clarified that the price rise in polymers is due to unprecedented rise in crude oil price, the naptha price also increased to an all-time high of $1087 per tonne and in the budget imposed five percent customs duty on naphtha, which resulted in further cost push.

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