Price rise may lead plastic processing units to closure

Kolkata, Jun 12 (UNI) Erratic supply and abnormal price hike of raw materials might force many plastic processing units to closure, Indian Plastic Federation today said.

'' Thousands of plastic processing units face the risk of closure due to erratic supply and abnormal price rise ranging between 30 and 50 per cent, '' IPF President K K Seksaria said.

Addressing a press conference, he said domestic small and medium plastic processors were being unable to realise the increased cost for their committed orders on the one hand and they were becoming defaulters to their suppliers on the other.

He urged the primary producers, including the Reliance Industries, GAIL and the state-run HPL to ensure that the units got smooth supply.

'' The primary producers should not take advantage of speculative future prices in international commodity markets and should supply the material to domestic processors after realisation of their cost and fair margin, '' he said.

Mr Sakseria also appealed to the Centre to immediately restore customs duty exemmption on naptha and the West Bengal Government toi abolish the customs duty on all polymers.

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