Home / Business and Economy / Plastic Industry Crisis: 59% Price Hike Threatens MSMEs
Plastic Industry Crisis: 59% Price Hike Threatens MSMEs
15 Mar
Summary
- Polymer costs surged 59% in 11 days due to West Asia conflict.
- Over 90% of 50,000 plastic units are MSMEs facing closure.
- Industry seeks government support package and price stability.
The Indian plastic processing industry, largely comprised of Micro, Small, and Medium Enterprises (MSMEs), is on the brink of closure due to sharply increasing polymer costs. Raw material prices have seen a staggering 59% increase in just 11 days, between March 1st and March 11th, 2026, escalating significantly from March 1st.
This volatile situation is attributed to global uncertainties and supply disruptions stemming from the ongoing West Asia conflict. Producers, whether gas or Naphtha-based, are reportedly raising prices uniformly, making it impossible for MSMEs to absorb or pass on these steep hikes to sectors like FMCG, healthcare, and automotive.
The All India Plastics Manufacturers Association (AIPMA) has formally requested the government to intervene. They are seeking a clear advisory for polymer producers to ensure price stability and have proposed a "survival support package" for MSMEs. This package aims to protect employment and sustain production amidst the geopolitical crisis.
AIPMA warns that the closure of these plastic processing units could lead to significant unemployment, impacting hundreds of thousands of families. The industry body also requests temporary relief in duties and taxes until the geopolitical crisis subsides, alongside easier access to working capital.
