Daijiworld Media Network - New Delhi

New Delhi, Apr 5: The Customs Duty exemption on 40 petrochemical products has failed to provide relief in raw material prices for plastic manufacturers and the manmade fibre (MMF) textile sector, industry stakeholders said.

Despite the duty waiver on key inputs such as PTA and MEG, used extensively in the MMF textile segment, yarn prices have not seen the expected correction. Former president of the Southern Gujarat Chamber of Commerce and Industry, Ashish Gujarati, said yarn prices should have dropped by at least 5 per cent but remain unchanged. He added that stakeholders have raised the issue with the Textile Commissioner, seeking intervention to bring down raw material costs.

Textile mill sources, however, indicated that polyester prices have begun to soften and yarn prices may decline in the coming days.

Meanwhile, the plastics industry continues to face significant cost pressures. Anil Reddy Vennam, senior vice president of the All India Plastic Manufacturers Association, said raw material prices surged by 65 per cent in the first 15 days of the conflict involving the United States, Israel and Iran.

He noted that prices have risen by ?86 per kg since the conflict began, pushing up costs of everyday plastic products such as shampoo sachets and biscuit packaging. Public sector suppliers have also increased prices, adding to the burden on manufacturers.

The sector, largely dominated by MSMEs, is facing uncertainty in sourcing raw materials. Industry estimates suggest nearly 90 per cent of plastic manufacturers fall under the MSME category, with 50,000 to 75,000 units in the organised segment.

Manufacturers are hesitant to finalise international contracts due to volatile pricing and long delivery timelines, while domestic raw material prices currently remain higher than global rates, impacting production and business planning.