Presidents Desk

Dear Members,

Greetings from Organization of Plastics Processors of India!

The West Asia Crisis has caused severe and multi-dimensional impact on India’s Plastic Processing Industry, which is highly dependent on petrochemical imports and energy inputs.

The biggest impact is on the supply of Plastic Polymers as India depends heavily on West Asia for petrochemical feedstocks. Polymer prices increased up to 70%. This is most critical factor affecting plastic processors.

Packaging materials witnessed 40-60% cost increase. These factors have caused sharp increase in production cost. Over 50% of plastic processing units halted operations in some regions. MSMEs (85% of industry) are worst affected due to unaffordable raw material prices.

The finished product prices increased only 10-15%, against 70% input cost rise. Thus most of the industry is in survival mode.

Supply Chain Disruptions resulted in Irregular raw material availability, Production planning uncertainty and Inventory shortages. Plastic processing is a link industry. Hence disruption spreads widely. The affected sectors are- Food Packaging & Bottled Water, FMCG, Pharmaceuticals, Automobiles and Construction.

The current West Asia Crisis is resulting in – Job losses, reduced wages and Informal labor migration.

The West Asia Crisis has created a storm for the Indian Plastic Processing Industry. Even after the West Asia Crisis comes to an end, it will take substantial time to return to the pre-crisis situation.

I wish that the West Asia Crisis ends at the earliest.

With Best Wishes,
Pradeep Rathod
President, OPPI