| After incurring huge losses during the last financial | | | | “Currently, the unavailability of primary |
| year as a result of the economic slowdown, the | | | | ingredients is a major issue for Plastic |
| plastic industry is now banking on the newly | | | | Manufacturers. Due to lower supplies of raw |
| elected United Progressive Alliance (UPA) | | | | materials, the production capacity of the plastic |
| government for providing them some relief in | | | | sector has also taken a beating. The provision of |
| 2009-10. | | | | tax benefits and permitting the import of plastic |
| Plastic promotion councils like Indian Plastics | | | | scrap will help the sector recover from the |
| Federation (IPF) and the Plastic Export Promotion | | | | impact of the ongoing crisis,” commented |
| Council (PLEXCON) are drawing up their demand | | | | Virender Sharma, proprietor of a small-sized |
| list for the new government. The industry bodies | | | | plastic company in New Delhi, All India Plastic |
| would soon place necessary pre-budget | | | | Products. |
| recommendations in order to help the | | | | Besides, it has become imperative for the |
| government bring about improvement in the | | | | government to speed up the process of tax |
| economic scenario and drive the growth of the | | | | refunds and introduce measures that would help |
| sector. | | | | the domestic SME sector to counter stiff |
| Demand of plastic SMEs | | | | competition from neighbouring countries like |
| Extension of tax incentives and liberalisation of | | | | Malaysia, Thailand, China and Vietnam. |
| import of industrial plastic scrap tops the agenda | | | | “We strongly recommend that the |
| of the plastic promotion councils in India. | | | | government takes necessary steps to ensure |
| Since long, the Indian plastic sector has been | | | | equitable distribution of raw materials to bring |
| suffering due to the recessionary pressures and | | | | about a balanced growth of small and mid-sized |
| the low supplies of polythene and polypropylene in | | | | plastic manufacturers in the industry,” said KK |
| the domestic market. | | | | Seksaria, President of the IPF. |
| The shortage of raw materials and unstable prices | | | | In order to put the plastic sector back on the |
| have largely affected the growth of the sector. | | | | growth track, the government needs to pay |
| The industry is seeking the nod for liberal imports | | | | attention to the needs of the SME segment and |
| of plastic raw materials and removal of custom | | | | initiate measures that will enable them to |
| duty for resolving the issue of scarcity of raw | | | | overcome the existing challenges. |
| materials. | | | | |