New Delhi, Jan 5 (KNN) The Micro, Small and Medium Enterprises (MSMEs) in the plastic sector were able to register positive trend in 2017, however an economy grappling from the hangover of demonetization and early GST complications did put stress on the sector, Karnataka Plastic Manufacturers Association informed.

Early 2017

Talking to KNN, Vijay Kumar, President of Karnataka Plastic Manufacturers Association said the small and medium enterprise trade heavily dependent on cash. With the government’s demonetization drive earlier, early 2017 was a period spent in coping from that shock.

Kumar further added that on the other hand the sale of one time use products including disposables, plastic bags registered a fall by over 10-12 per cent with different state governments imposing ban on their use.

Early GST

Highlighting the big challenge that was posed for the sector in 2017, Kumar informed that the July-December period was no less than a nightmare for plastic MSMEs since the plastic items were placed under three different tax slabs.

However with repeated representations before the GST council, the sector could bat for a common 18 per cent rate.

Minimum Wage Bill

The Minimum Wage Bill that came in around the corner led to difficulty for the employers to rationalise wages, Kumar informed.

The norm rolled out specifying wages is creating confusion and adding to the stress in chalking out the salary of the employees, he said.

Positive Highlights

Commenting over the positive highlights, Kumar informed that plastic manufacturing in the automobile sector as well as the packaging sector registered fair business.

“With the newer innovation taking place for the application of plastic moulded products in automobile sector, the business along the line is to grow further”, he said.

Also the plastic supplies to the electronic sector and consumables are likely to register positive trend of 10-12 per cent in the coming quarter, Kumar informed.

Earlier, the Plastics Export Promotion Council (Plexconcil) expressed confidence with regard to country’s plastic exports saying that it is likely to cross the USD 8 billion mark soon. (KNN/DA)