Presidents Desk Archives – 2023

From the Presidents Desk

Dear Members,

Greetings from Organization of Plastics Processors of India!

During our meetings with the Department of Petrochemicals and Ministry of Commerce, we have been insisting on the review of various FTAs as many of these FTAs contain clauses, which have adverse impact on the Indian Plastics Industry.

We are happy to inform you that Ministry of Commerce has begun looking at several products where duties on input items are higher compared to the finished goods as part of a comprehensive review of its trade pact with the 10-member ASEAN to correct several anomalies that have undermined domestic manufacturing.

Imbalances in import duties, rules of origin and non-tariff barriers will come in for a closer look. The Commerce and Industry Ministry has asked the industry for inputs to identify products where an inverted duty structure is causing a disadvantage to local manufacturers.

The ongoing review of the pact, which came into effect in 2010, is slated to conclude next year.

India has rolled out several measures such as production-linked incentives (PLI) schemes, higher import tariffs and import monitoring to encourage local manufacturing, but several trade agreements negotiated earlier are seen as stumbling blocks.

ACHEMA 2024 will be held at FRANKFURT/Main, from 10th to 14th June 2024. ACHEMA takes the lead and pioneers advancements in the global process industries and their suppliers, as it brings together manufacturers and service providers from more than 50 nations.

Organization of Plastics Processors of India has tied-up with Tibro Tours for ACHEMA 2024 packages. All companies booking Tibro Packages for ACHEMA 2024 through Organization of Plastics Processors of India will be eligible for discount.

With Best Wishes,
Dilip Parekh
President

Dear Members,

Greetings from Organization of Plastics Processors of India!

We are at the end of the Financial Year 2023-2024.

Organization of Plastics Processors of India is now registered on Darpan Portal of Niti Aayog. In order to strengthen its commitment to the MSME Sector, OPPI has also taken registration of Ministry of MSMEs. OPPI has applied for International Cooperation Scheme of Ministry of MSMEs to provide MSMEs with opportunities to enter International Markets and integrate them to global value chains.

Financial assistance is provided to eligible / State / Central Government Organization, registered industries Association, Societies/Trusts involved in promotion and development of MSME sectors. The revised IC Scheme has three sub components namely (i) Market Development Assistance, (ii) Capacity Building of First Time MSE Exporters and (iii) Framework for International Market Intelligence Dissemination (IMID). Under the Market Development Assistance, Financial assistance is provided for participation in International Exhibitions/Trade Fairs abroad and also to organize International Conferences / Seminars / Workshops / Summits in India.

As and when we get approval for the IC Scheme for International Plastics Exhibitions promoted by OPPI, you will be informed regarding the same.

We propose to invite a Startup Founder as the Chief Guest for the Annual Meet, which may be held in July/August 2024. The Topic of the talk may be – “Ecosystem of Startups”. The other details will be informed to you in due course.

As informed to you we have tied up with Tibro for CHINAPLAS 2024 scheduled from 23rd to 26th April 2024 in Shanghai. CHINAPLAS 2024 is an important event on the Industry’s calendar and the starting point for decisions that shape future products, processes and solutions. The Hotels chosen for CHINAPLAS 2024.

With Best Wishes,
Dilip Parekh
President

Dear Members,

Greetings from Organization of Plastics Processors of India!

We are fast approaching end of the Financial Year 2023-2024.

Recently I visited PLASTFOCUS 2024 at Dwarka, Delhi. During PLASTFOCUS I had interaction with all segments of the Plastics Fraternity. I was happy to note that majority of the companies connected with Plastics were quite happy with their Business Performance in the Current Year. They were also of the view that there were upticks in the Plastics Business and they were optimistic about the future. I extend my best wishes to all OPPI members.

The 12th Edition of our Seminar on – “Crucial Role of Maintenance in Plastics Processing Industry” is scheduled on 22nd March 2024 at India Habitat Centre, New Delhi. I appeal to all our members and particularly to those in North India to attend this Seminar with their Engineering and Maintenance personnel.

PLEXCONNECT 2024 will be held from 7th to 9th June 2024 at NESCO, Mumbai. Organization of Plastics Processors of India is promoting & marketing PLEXCONNECT 2024. Our Members are requested to participate in PLEXCONNECT 2024 through OPPI for the following reasons:-

  • A comprehensive showcase for cutting-edge technologies and plastics processing capabilities aligned with global requirements.
  • The ideal platform committed to promoting innovation and sustainability.
  • Forge valuable partnerships and gain insights into global market trends.
  • A strategic positioning to ensure global reach access to key international markets.
  • Unlock a world of opportunities for export growth and expansion.
  • Foster collaboration and knowledge exchange, Connect, learn and thrive in the competitive global marketplace.

As informed to you we have tied up with Tibro for CHINAPLAS 2024 scheduled from 23rd to 26th April 2024 in Shanghai. CHINAPLAS 2024 is an important event on the Industry’s calendar and the starting point for decisions that shape future products, processes and solutions. The Hotels chosen for CHINAPLAS 2024 are near the Exhibition Venue and are of good quality. All members proposing to go to CHINAPLAS 2024 may contact OPPI Secretariat.

With Best Wishes,
Dilip Parekh
President

Dear Members,

Greetings from Organization of Plastics Processors of India!

Department of Chemicals and Petro Chemicals issued order on 4th January 2024 to amend the Polyethylene Material for Moulding and Extrusions
(Quality Control) Order, 2022- Polyethylene Material for Moulding and Extrusions (Quality Control) Amendment October, 2024.

The following grades of Polyethylene have been exempted from the provisions of the
QCO:-
a. Low Density Polyethylene Extrusion (LDPE) Coating;
b. Low Density Polyethylene (LDPE) Film Grades (Blocon / Cast) or Pharma;
c. Linear Low Density Polyethylene (LLDPE) Butene Grades;
d. Linear Low Density Polyethylene (LLDPE) Hexene / Octene Grades;
e. Metallocene Polyethylene Grades;
f. Base Resins of Power Cable, Jacketing and other applications; and
g. Compounds for Cable Jacketing/ Sheathing/Polythelene-80 and Polythene-
100 (Black and Pigmented) / Reinforcement Fillers;

Thus, all the demands of the Plastic Processing Fraternity have been complied with.

OPPI has also represented to Joint Secretary (Petro Chemicals) to consider deferment of the QCO pertaining to POLYCARBONATE for 1 year as there is no local production and none planned in near future. Due to non-completion of the inspections and BIS approvals, local processing industry will face severe raw material crunch, if QCO is implemented on 12th March 2024.

We have sent Pre-Budget Proposals to the Ministry of Finance and other relevant authorities. However this will be the Interim Budget. Thus, there will not be any Drastic Changes in the Interim Budget.

With Best Wishes,
Dilip Parekh
President

Dear Members,

Greetings from Organization of Plastics Processors of India!

I am interacting with you as we are on the verge of saying “Goodbye” to 2023 and Welcoming 2024. I take this opportunity to wish you and your families a Very Happy, Prosperous, Peaceful and Healthy 2024.

Our Country is on the cusp of becoming third largest economy in the world. Of course this depends on the productivity of each one of us!

A few days back the following advertisement caught my attention:-

Upcycling of Plastic WasteThe Upcycling of Plastic Waste into Useful Products will certainly be a boon to the entire global Plastics Processing Industry. Upcycling plastics reduces the amount of waste that gets to landfills. Most plastics contain chemicals that cause soil degradation and water pollution. Upcycling plastics helps to support local businesses and industries and help entrepreneur in waste management.

I appeal to all OPPI members to upcycle the Plastic Waste and reap the benefits.

With Best Wishes,
Dilip Parekh
President

Dear Members,

Greetings from Organization of Plastics Processors of India!

In our series of Seminars on – “Crucial Role of Maintenance in Plastics Processing Industry”, 10th Edition of the Seminar was held on 22nd November 2023 at The Deltin, Daman. A detailed report on the Seminar with photographs is included in this issue of Plastiscope. The next Seminar on – “Crucial Role of Maintenance in Plastics Processing Industry” will be held on 12th January 2024 at Bangalore and thereafter at New Delhi on 23rd February 2024. I appeal to all members to take advantage of these Seminars and reduce the down time of their machines to almost nil.

The Intergovernmental Negotiating Committee-(INC-3) was held at Nairobi, Kenya. INC-4 will be held at Ottawa, Canada from 21st April to 30th April 2024. INC-5 will be held in Busan, South Korea from 29th October – 1st November 2024. Organization of Plastics Processors of India has nominated Senior Members with commitment to the Task Force constituted by Plastindia Foundation. We will keep you updated on this issue from time to time.

The Quality Control Order on Polyethylene Materials for Moulding and Extrusion (Quality Control) IS 7328:2020 is due for implementation from 5th January 2024. Organization of Plastics Processors of India has strongly recommended to keep various grades of Polyethylene for which India Import dependent out of the preview of IS 7328: 2020 and exempt them.

With Best Wishes,
Dilip Parekh
President

Dear Members,

Greetings from Organization of Plastics Processors of India!

In my last message to you I had mentioned about our Representation seeking deferment of QCOs on Polyethylene and other products. It has been already informed to you that as per our request the implementation of QCOs for Maleic Anhydride, Ethylene Vinyl Acetate Copolymers and Polyethylene Material for Moulding and Extrusion will now be implemented on 24th April 2024, 3rd April 2024, 5th January 2024 respectively. OPPI is grateful to Joint Secretary (PetroChemicals) for accepting our requests.

OPPI Secretriat had sent to you “Zero draft text of the international legally binding instrument on Plastic Pollution, including in the marine environment”. The purpose of this document is to end plastic pollution including in the marine environment & to protect human health and the environment.

Our Executive Committee Member Mr. Pankaj Poddar has summarized this document as given below:-

  1. End of plastic pollution, approach to address the full life cycle of plastic, prevention / progressive reduction and elimination of plastic pollution throughout the life cycle of plastic by 2040 – utilization of plastic and plastic waste.
  2. Intent to take steps to reduce demand and production of primary plastic polymer by various means including removal of subsidies & other fiscal incentives and establishment of regulatory requirements.
  3. Not to allow and eliminate use of ‘chemicals & polymers’ that may hinder safe and environmentally sound management including heir reusability, reusability, recyclability.
  4. P9 – 2(a) Measure to ensure that production or use is carried out in a manner that prevents and minimizes human exposure>chemicals are managed in a safe and environmentally sound (b) ‘producers’ & ‘importers’ to provide to govt – additional info on transparency, tracking, monitoring, and labelling about hazards to human and environment (d) mark and label – to enable environmentally sound use and handling.
  5. Problematic and avoidable plastic products, short-lived, SUP and intentionally added microplastics except (where a party has a registered exemption for the relevant production), production, design, and performance with a view to reduce demand of PPP, plastic, and plastic products – reduce, reuse, refill and repair of plastic and plastic products and alternative plastics (safe), non-plastic substitute, EPR – development of National EPR System (Govt).
  6. Prevention of emission of hazardous substances (microplastics), release to soil & water from lifecycle, chemicals & polymers.
  7. Waster Management – ref. to ‘Basel Convention’ – parties to ensure taking effective measures – not to allow waste disposal leading to emission and release of hazardous substance – invest in waste management systems and infra to enable environmentally sound management of plastic waste.
  8. No export – listed chemicals & polymers, plastic product containing listed chemicals & polymers and microplastic or products addressed (problematic, avoidable – short lived & SUP, intentionally added microplastic (except permitted and with the prior consent of importing state).
  9. No transboundary movement of plastic waste except for its safe and env. Sound management with the prior consent of importing state, will develop export permit.
  10. Dealing with existing plastic pollution – identification of accumulation zones, sectors, hotspots etc. – most affected, where litter pose a threat to species or habitats, take steps for mitigation and remedial measure. Just transition, Transparency, tracking, monitoring, and labelling – producers, importers to disclose harmonized info on their chemical composition of plastic and plastic products.
  11. Every country shall establish a plastic pollution fee to be paid by plastic polymer producers – Govt to setup mechanism for implementation of ‘global plastic pollution fee’; decrease financial flow towards projects result in emission and release and increase financial flow projects to prevent or reduce emission.
  12. Parties to co-operate for capability building, technical assistance and technology transfer.
  13. National Plan – Each Party shall develop and implement a national plan to fulfil its obligations under this instrument.

OPPI Secretriat has submitted detailed inputs on Zero draft text of the International Legally Binding Instrument on Plastic Pollution, including in the marine environment to the Joint Secretary (PetroChemicals), who will be attending third session of Intergovernment Negotiating Committee (INC – 3) scheduled from 13 to 19 November 2023 in Nairobi.

Organization of Plastics Processors of India is in the process of becoming UNEP – accredited organization.

With Best Wishes,
Dilip Parekh
President

Dear Members,

Greetings from Organization of Plastics Processors of India!

In my last and earlier messages I have been talking to you regarding the emphasis to be laid on exports of Plastic Value Added Products from India.

During July 2023, India Exported Plastics worth USD 956 million lower by 14.6% from USD 1,119 million in July 2022.

The cumulative value of plastics exported during the period April 2023 to July 2023 was USD 3,741 million as against USD 4,395 million during the same period last year, registering a decline of 14.9%.

In view of the above OPPI is considering taking delegations to countries with big export potential for Plastic Value Added Products.

The Council on Energy, Environment & Water has said India’s export of around $37 billion, amounting to about 43% of the country’s exports to the European Union as of 2022, are likely to be impacted due to the bloc’s various non-tariff measures (NTM), including the Carbon Border Adjustment Mechanism (CBAM).

As a report titled “Sustainability-driven Non-Tariff Measures : Assessing Risks to India’s Foreign Trade”, the product categories at risk due to the proposed sustainability – focused EU regulations include textiles, chemicals, select consumer electronics products, plastic and vehicles. These items accounted for 32% of India’s exports to the EU in 2022, valued at about $27 billion. We have represented to Joint Secretary (Petro-Chemicals) that the implementation of QCO on Polyethylene should be deferred to April 2024.

Amid weakening global prospects, the Indian Economy is gaining strength led by domestic private consumption and fixed investment with strong public sector capital expenditure.

I once again appeal to you to concentrate efforts on exports of Plastic Value Added Products.

With Best Wishes,
Dilip Parekh
President

Dear Members,

Greetings from Organization of Plastics Processors of India!

During OPPI Annual Meet held on 4th August 2023, I had an opportunity to interact with the Indian Plastics Fraternity at Taj Santacruz.

The talk by Mr. Sunil Kant Munjal, Chairman, Hero Enterprise on – “Managing Transition In Family Owned Business” was exceptionally good and very well received by all the participants.

A detailed report with photographs of OPPI Annual Meet 2023 appears in this issue of Plastiscope.

Hon’ble Minister for Commerce and Industry has set the target for exports of value added products to Rs. 10 Lakh Crores by 2025. However, On the export front, India exported plastics worth USD 899 million, lower by 18.6% from USD 1,103
million in June 2022. Cumulative value of plastics export during April 2023 – June 2023 was USD 2,785 million as against USD 3,276 million during the same period last year, registering a decline of 15.0%. What is true for the plastic sector is also true for exports of other products. Thus it appears that the economic situation in various countries is under stress resulting in less demand.

In view of the above Organization of Plastics Processors of India is considering taking delegations to various countries to import value added plastic products and plastics processing machinery in substantial quantity. Kindly suggest the names of various countries to which OPPI should take delegations.

Govt. of India is notifying and implementing BIS for Plastic Polymers.

Quality Control Order on ABS was implemented with effect from 12th June 2023. BIS has introduced minimum Quality Standards for the manufacturing and imports of Polypropylene as well as PVC.

Quality Control Order on Polyethylene is due for implementation from 3rd October 2023. OPPI has strongly represented to the Department of Chemicals and Petrochemicals to defer the implementation of Quality Control Order on Polyethylene. We will keep you informed regarding further developments in this regard.

With Best Wishes,
Dilip Parekh
President

Dear Members,

Greetings from Organization of Plastics Processors of India!

The Concept of Circular Economy and Sustainability has become the most pursued subject by the Governments, Businesses, and Citizens all over the globe. Therefore it has become extremely important to follow and implement the Circular Economy and Sustainability Policy.

The resources of our planet are limited for this reason, we are committed to establishing the circular economy as a sustainable, future-oriented concept in the industry and to protect the Earth in a way. Sustainable and efficient use and processing of all raw materials is required to protect the environment.

UP Government is ensuring that convergence with national missions such as Swachh Bharat Mission and National Mission for Clean Ganga for enabling knowledge and developing infrastructure to manage litter. In line with the clarion call given by Prime Minister Narendra Modi to phase out single-use plastics, the Ministry of Environment, Forest and Climate Change,
(MoEFCC), Government of India, notified the Plastic Waste Management Amendment Rules, which prohibits identified single-use plastic items with low utility and high littering potential.

UP started complying with the local regulations and national commitments. Regular enforcement drives are carried out for compliance of the prohibition on carry bags, thermacol and cutlery. As a result several metric tonnes of SUPs have been  onfiscated and fines have been imposed on defaulters.

Plastic waste used for road construction amounts to 100 tonnes, which was used in Lucknow, Kanpur, Meerut and Jhansi. Facility for plastic waste to oil of 6 tonne/day capacity has been installed in Jhansi and the Urban Development Department
has already sanctioned budgets and design of Material Recovery Facilities (MRFs) to be set up in each urban local body of the state. Manufacturers and corporates are making efforts ranging from undertaking buyback schemes for collection of plastic wastes to increasing the recycled content in their plastic packaging. The state government is undertaking various initiatives focused on a shift from the linear ‘take-make-waste’ model to ‘plastics circular economy’ regime.

Tackling the issue, a joint project was been initiated by the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) in partnership with the MoEFCC, Government of India, and the Department of Environment, Forest and Climate Change (DoEFCC), Uttar Pradesh. Working closely in four cities-
Varanasi, Prayagraj, Mirzapur and Kanpur- efforts are being made for developing a circular economy approach across the entire life cycle of plastics in Uttar Pradesh.

I appeal to all our members to follow the example set up by Government of UP.

With Best Wishes,
Dilip Parekh
President