Cheap imports push plastics use

The eastern region has witnessed 20 per cent surge in processing capacities in plastics in the last financial year even as imports of finished products continued to pour in from neighbouring country Nepal.

The increase in processing capacities can mainly attributed to the development that is taking place in the downstream sector of Haldia Petrochemicals Ltd (HPL), J C Agarwal, president of Indian Plastic Federation, said here.

Consumption of finished plastic products is pegged at 30,000 tonne a month while about 10,000 tonne is being imported into the region. The processing capacity in the region is about 20,000 tonne a month. West Bengal alone processes 16,000 tonnes a month.

Agarwal said producers in Nepal enjoyed a price advantage over Indian manufacturers as Nepalese goods were under a special treaty with India.

"They do not have to pay customs duty while exporting to India. Moreover, they can get raw material (granules) cheaper from Indian producers who are willing to share a part of DEPB advantage with foreign buyer," he added.

AS cost of production was almost the same, Nepalese producers enjoyed a price advantage of at least 15 per cent, he pointed out.

India's polymer consumption was 3.5 lakh tonne per month, equivalent to 3.8 kilogram per year. Consumption has been rising steadily, but this has led to environmental hazards from plastic waste.

To tackle the problem, IPF made an offer to Kolkata Municipal Corporation (KMC) under which pickers would be assigned to collect plastic waste from every house. IPF will facilitate the process by assuring offtake of the plastic garbage by recycling units.

KMC is learnt to have assured IPF it would implement the proposal in one ward in Kolkata on a pilot basis after the general elections on May 10. Kolkata produces 10 tonnes of plastic wastes a day.