Plastics Manufacturers Seek Government Intervention Over Soaring Polymer Prices Amid West Asia Conflict

The All India Plastics Manufacturers Association (AIPMA) has urged the government to provide a 'survival support package' for MSME units in the plastic processing industry. Citing a 59% increase in polymer prices in just 11 days due to the West Asia conflict, AIPMA warns of imminent factory closures and widespread unemployment. The association seeks price stability from polymer producers and financial relief to sustain production for critical sectors like FMCG and healthcare.

The All India Plastics Manufacturers Association (AIPMA) has appealed to the government for immediate intervention to support the plastic processing industry, particularly its numerous MSME units, which are severely impacted by escalating polymer costs. The ongoing West Asia conflict is blamed for unprecedented price volatility, with polymer producers increasing raw material prices by a staggering 59% between March 1st and March 11th. This sharp hike, irrespective of the producers' input basis (gas or naphtha), makes it impossible for processing units to honor prior supply commitments or pass on the increased costs to end-users in crucial sectors such as FMCG, consumer products, healthcare, and automobiles.AIPMA emphasizes that MSMEs, which constitute over 90% of the approximately 50,000 plastic processing units, cannot absorb such steep increases. The industry body has labeled these price hikes as 'unreasonable' and warned of widespread factory closures, leading to significant unemployment and economic instability. To mitigate this crisis, AIPMA has requested the Ministry of Chemicals & Fertilizers to issue a clear advisory to polymer producers to maintain price stability and prevent market panic. Furthermore, they seek a 'Survival Support Package' for MSME units, alongside facilitation for easier working capital and temporary relief from duties and taxes, to protect employment and ensure sustained production until the geopolitical crisis subsides.