Plastic worst hit by global turmoil: AIPMA

Mumbai, Nov 17 (UNI) The All India Plastics Manufacturers' Association (AIPMA), a 63-year old apex body of the Plastics Manufacturers in India, has found, on continuously monitoring the impact of global economic crisis on all industry sectors, that plastic is the worst affected.

AIPMA president Kailash B Murarka told reporters here today, ''This volatile status and turmoil in the economy has exposed Plastics Industry to huge risk and adversely affected not only the raw material manufacturers, but also the processors, specially micro, small and medium sectors. As usual, AIPMA has taken initiative to discuss with All India Industry Captains and Association Heads to chalk out strategies for the industry and find out solutions to steer through the prevailing situation, the industry is subjected to at the current scenario.'' ''Plastic industry is facing severe demand crunch causing serious concern to the domestic industry. Demand for major polymers was 10 per cent lower in second quarter this financial year as compared to the same period last year. The slowdown in demand is particularly pronounced in the commodity segment,'' Mr Murarka said.

This slowdown in demand is adversely affecting the industry comprising of 15 raw material producers and approximately 50,000 processing units in the country with adverse impact on the employment of for million people associated with this industry, he said.

''The rate of VAT levied on polymers and articles of plastic varies from state to state, with some states levying as high as 12.5 per cent of local taxes. This consequently pushes the price higher,'' Mr Murarka said.

AIPMA appealed to authorities of Finance Ministry, Commerce Ministry and the parent Ministry, of Plastics Industry -- the Chemicals&Fertilizers Ministry, to support Plastics industry to come out of the crisis.

UNI AR SR NP2034