: AIPMA allege domestic polymer producers of artificially jacking up prices; urges PM to intervene #FinanceIndia #StockMarketNEWS AIPMA allege domestic polymer producers of artificially jacking up prices;

@StockMarketNEWS Wed 02 Dec, 2020

Posted in: #FinanceIndia #StockMarketNEWS

AIPMA allege domestic polymer producers of artificially jacking up prices; urges PM to intervene #FinanceIndia #StockMarketNEWS
AIPMA allege domestic polymer producers of artificially jacking up prices; urges PM to intervene Mumbai, Dec 1 (KNN) Saddened over the dramatic and unnatural increase in price of raw materials by the domestic polymers in the country, the All India Plastics Manufacturers Association (AIPMA) has knocked Prime Minister Narendra Modis door to intervene.

AIPMA in a letter to the Prime Minister claimed that prices hike by domestic polymers producers have been "exponential" and are "threatening the survival of thousands of plastics processing plants in India.

Some of the raw materials cited include polyvinyl chloride (PVC), high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE) and polypropylene (PP).

Price increases have exacerbated working capital and financial issues brought about by the current Covid-19 pandemic, AIPMA said.

The association further said that due to demand issues arising out of pandemic, plastic processors are not able to raise prices of their products to a similar extent to compensate for the increase in raw materials price adding this is creating further burden and most of these units are incurring huge financial losses.

AIPMA also claimed producers are exporting raw materials in large quantities, creating a shortfall in domestic markets.

As a result there is a growing threat of increased imports of plastics intermediate and finished goods from countries like China. This would prove disaster to your vision and plan to make India Aatmanirbhar, AIPMA said.

Plastics manufacturers now face competition from increased imports, along with reduced exports of intermediate and finished material. The higher domestic prices have also made plastic goods exporters less competitive, as AIPMA claimed that polymer prices are "10-15 per cent cheaper" in foreign markets compared with India.

In the letter AIPMA has also proposed to set a petrochemical regulatory authority to oversee polymer markets to "curb the consortium" and ensure no "undue profiteering" persists. It wants the government to investigate the alleged artificial increase in prices of raw materials nationwide.

It also asked the government to stop the imposition of anti-dumping duties, mandatory Bureau of Indian Standards (BIS) and a ban on the export of raw material from India.