New Delhi: Apart from food items and oil, plastic products such as water storage tank, buckets, furniture, toys and other commonly used household items have become costlier by 30-35%, say manufacturers.
“The prices of household plastic items like buckets, furniture, utensils and even soap cases have increased by 30- 35% in the last six months mainly on account of rise in raw material prices,” Plastic Export Promotion Council Chairman Nimesh Sayani said.
Raw material cost of plastic industry has gone up by over 40% in addition to rise in transportation costs and wages, he said.
According to official data on inflation, the wholesale plastic product prices have gone up by over 4% in the last one year.
Market watchers said the rates of almost all plastic items, whether for household or industry, agriculture or commercial sector, have increased in the retail market.
The increase in prices have marginally affected the demand of these products especially in smaller towns and rural areas, they added.
The prices of plastic goods like trays, bottles, chairs, toy cycles available at retail stores have even further gone up, the retailers said.
In this regard, the plastic manufacturers have also submitted a representation to the Finance Ministry asking abolition of customs duty on import of petrochemical products especially polymer.
The manufacturers complained that due to rise in cost of raw material the profit margins have reduced by 10-12% and some units are on the verge of closure.
The manufacturers are unable to schedule their production due to frequent raw material price hikes, with 50% of production lines lying idle.
“We are unable to keep our commitment with clients because of the pricing uncertainty,” Sayani said.
According to plastic exporters, many minor traders have closed down their businesses. There are about 2,200 plastic exporters in India who ship products worth about Rs 13,804 crore to African and American countries.