Plastic exporters body Plexconcil has urged the government not to impose mandatory standard certification norms on the import of polymers as it will have ''serious'' ramifications on the outbound shipments of the sector.
India's plastics exports have already recorded a contraction of 4.2 percent to USD 3.27 billion from April-June 2022. Polymers like PVC (Polyvinyl Chloride), Polypropylene, ABS (Acrylonitrile-Butadiene-Styrene), HDPE (High-Density Polyethylene), LDPE (Low-Density Polyethylene), LLDPE (Linear Low-Density Polyethylene), and Polycarbonate are key raw materials for the plastic industry.
According to the Plastic Export Promotion Council (Plexconcil), the Department of Chemicals wants to impose mandatory Bureau of Indian Standards (BIS) norms on polymers.
''This is very harmful to the plastic processing industry as polymers are already in shortage in the country due to not enough production in the country and imports are inevitable. Domestic processing industry will become uncompetitive,'' the council's chairman Arvind Goenka told PTI. He said India is not yet self-reliant on polymers and its imports are inevitable. The imposition of this non-trade barrier will increase the price of polymers for Indian importers, making domestic plastic processors uncompetitive, Goenka said.
It will also make it difficult for MSME players to compete with imports of cheap finished articles of plastics which will not be governed under any quality control order. Instead, he suggested that the government should impose mandatory BIS norms on finished plastic goods as it will ensure a ''good'' quality product in the hands of consumers. India's plastic exports have grown from a meager USD 16.5 million in 1955-56 to as much as USD 13.4 billion in 2021-22.
Goenka said the industry needs support from the government as India's share in the world export market of plastics is even below that of Thailand, Vietnam, and Malaysia. To produce finished goods, several additives are added with polymers. Quality and quantity of these raw materials, processing techniques, modern machines, and technology determine the quality of finished goods, so the imposition of this mandatory norm on polymers cannot ensure a good quality finished product, he added.
''Mandatory BIS on polymers will in no way improve the quality of finished goods,'' he said, adding ''not all grades of polymers are produced in India, whereas mandatory BIS is imposed on the HSN itself, thereby creating a barrier in imports for all grades of that polymer.''
In trade parlance, every product is categorized under an HSN (Harmonised System of Nomenclature) Code.
It helps in the systematic classification of goods across the globe. If the government decides to impose mandatory provisions on polymers, then it should be imposed on the complete value chain of that polymer, he suggested. In 2019-20, finished plastics worth USD 5.50 billion were imported, which can be reduced, he said.
''Indian exporters are exporting their products to over 200 countries worldwide as per ISO standards which are international standards. If India implements mandatory imports of polymer raw materials as per BIS standards and does not follow international ISO standards, other countries may also impose retaliatory measures which will greatly hamper export of processed plastics from India,'' Goenka said.
The council has submitted a presentation on the issue to the authorities.
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