Plastic fraternity to deliberate on volatile price rise
Updated: Sep 03, 2013 04:01:57pm
Mumbai, Sept 3 (KNN) The All India Plastics Manufacturers’ Association (AIPMA) has called for a meeting of all heads of plastics associations, processors, convertors, polymer producers and stakeholders in the plastic fraternity including machinery to deliberate on the current volatile price rise.
The meeting would be held here on September-5. It would focus on sustainable growth in the plastic Industry in the backdrop of the current volatile scenario.
“AIPMA has been alert on the recent changing and volatile price rise scenario in plastics industry due to various factors. It is giving an adverse effect to the Industry at large for future growth,” said Chairman AIPMA Governing Council, Arvind Mehta in a release.
The meeting would address various issues pertinent to the sector. It would review the challenges in the current business scenario and the way forward; as also the indiscriminate import of finished goods at almost zero rate of duty as a result of FTA’s.
Another issue that would be discussed is the 2.5 per cent increase in import duty which when combined with other taxes like VAT, CST, OCTROI etc will have a cascading effect on locally available prices of raw material.
AIPMA considers that their future will be at stake with the firming up of local prices that will act as a disincentive for processors and weaken them in long term, especially the MSME plastic processors.
Other issues that will be taken up are the impact of rupee depreciation on the industry; the recent increase in the import duty on raw materials from 5 per cent to 7 per cent - 7.5 per cent; and the need for customs duty of finished goods import to be increased to 10 per cent from the current 2.5 per cent. (KNN/ES)
The meeting would be held here on September-5. It would focus on sustainable growth in the plastic Industry in the backdrop of the current volatile scenario.
“AIPMA has been alert on the recent changing and volatile price rise scenario in plastics industry due to various factors. It is giving an adverse effect to the Industry at large for future growth,” said Chairman AIPMA Governing Council, Arvind Mehta in a release.
The meeting would address various issues pertinent to the sector. It would review the challenges in the current business scenario and the way forward; as also the indiscriminate import of finished goods at almost zero rate of duty as a result of FTA’s.
Another issue that would be discussed is the 2.5 per cent increase in import duty which when combined with other taxes like VAT, CST, OCTROI etc will have a cascading effect on locally available prices of raw material.
AIPMA considers that their future will be at stake with the firming up of local prices that will act as a disincentive for processors and weaken them in long term, especially the MSME plastic processors.
Other issues that will be taken up are the impact of rupee depreciation on the industry; the recent increase in the import duty on raw materials from 5 per cent to 7 per cent - 7.5 per cent; and the need for customs duty of finished goods import to be increased to 10 per cent from the current 2.5 per cent. (KNN/ES)
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