Exporters of plastic seek zero-duty window

NEW DELHI, May 24: Plastic exporters are looking at the possibility of creating small-scale industry (SSI) cartels to pool their resources ...

NEW DELHI, May 24: Plastic exporters are looking at the possibility of creating small-scale industry (SSI) cartels to pool their resources on the production side to manufacture similar items in the moulding and extrusion sectors.

In a presentation made before the commerce ministry, the Plastics and Linoleums Export Promotion Council (Plexconcil) said that as part of a medium-term strategy to boost exports, the plastic processing sector could come together for better capacity utilisation and eliminate competition within the industry.

There are 20,000 units in the plastic process sector. These units are geared to process 4.09 million tonnes of plastics, against which they process only 2 million tonnes of virgin plastic material.

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The idea of an SSI cartel, the council said, was in the nascent stage, and would be developed with the intention of promoting exports at competitive rates.

The council also urged the government to take various initiatives for encouraging plastic exports. Their main demand in the medium term was that the plastic exporters be offered zero-duty window under the EPCG scheme. This was essential to facilitate manufacturers to invest in machinery to achieve economies of scale.

The measure, the council argued, would also motivate the foreign plastic manufacturers to set up base in the country. Manufacturers already having production bases in India will get a chance to encash the local opportunities.

The council has further suggested that export promotion plastic processing parks should be set up at select locations along the coastline. This will enable exporters to import raw material, process it and export finished goods without trouble.