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The metal container packaging sector is up in arms after the steel ministry ordered mandatory standards for tinplates, a key input in the tin can, metal packaging process. Companies argue it could cripple the sector, which is concentrated mostly in the micro, small and medium enterprises sector and employing hundreds of thousands of people.
The Steel and Steel Products (Quality Control) Order, which will come into force in August, enforces mandatory registration with Bureau of Indian Standards (BIS) and prohibits the manufacture, import, storage, sale and distribution of 16 steel and steel products. BIS is the national standards body, which certifies all consumer products, industrial or otherwise.
According to estimates, of the 550,000 tonnes of tin mill products (tinplate/tinfree steel) consumed by the sector, a two-fifth is imported. Tinplates are generally of two categories: prime - which is used for edible products; and, non-prime - for other end uses such as paints, pesticides, shoe polish, chemicals. The order doesn't differentiate between the two and calls for standardisation.
Manufacturers complain such stringent guidelines are ridiculous for non-food items of everyday use like calendar holders, coasters, etc and will only serve to push up costs.
Industry stakeholders, including the Metal-Container Manufacturers' Association, are against the move citing it will promote monopoly. Currently, the top two tinplate producers occupy 90 per cent of the market, while the rest are small manufacturers without financial capability to adopt higher standards.
They argue the order will not serve its purpose of ensuring quality fully since metal containers comprise only about five per cent of the total packaging sector. According to them, the move to regularise tinplate will give rise to alternative forms of packaging materials such as plastics, which are less environment friendly and non-recyclable.
Sanjay Bhatia, managing director, Hindustan Tin Corporation, and president, Metal Container Manufacturers Association, told Business Standard: "Since the restrictions are primarily on the raw materials and not finished goods, import of metal cans will increase, going against the ethos of Make in India."
Companies in the sector are also of the opinion that stricter norms would bring back the days of inspector raj, abetting corruption.
