Tamil Nadu small plastic manufacturers to move Centre on pricing

Small scale plastic manufacturers in Tamil Nadu plan to approach the central government to protect them from pricing practices of a handful of large commodity plastic suppliers.

The small scale and tiny plastic units are represented by the Tamil Nadu Plastics Manufacturer's Association (TAPMA). A TAPMA representative told Business Standard that 7,000 companies with a combined annual turnover of Rs 2,400 crore have been adversely impacted by pricing practices of large suppliers.

TAPMA members make end products like buckets, chairs, water cans and parts for the automotive industry. They source commodity plastics like LDPE and PVC from largely Reliance Industries, IPCL, Haldia Petro and Gas Authority of India.

The price of commodity plastics has been increasing in line with the increase in price of crude, the building block for the industry.

TAPMA has said that commodity plastics prices went up twice in June. However, the suppliers have raised the prices of commodities supplied from inventory even though it may have been bought at lower prices, claimed a representative of TAPMA.

TAPMA's problem is compounded by the inability of its members to pass on the increase in price of inputs to its customers, said the representative. In the current situation, TAPMA has decided to appeal to the central government for help.