Manufacturers in the plastics industry, which mostly fall under SME bracket, are seeking a 30 per cent rise in working capital loans from banks after the recent increase in cost of raw material.
Manufacturers in the plastics industry, which mostly fall under SME bracket, are seeking a 30 per cent rise in working capital loans from banks after the recent increase in cost of raw material.
Talking to reporters, Hiten Behda, Secretary, All India Plastics Manufacturers’ Association (AIMPA), Behda said that due to the recent hike in raw material cost, manufacturing of plastic products is becoming unviable. He added that since most of the manufacturers which are SMEs are not getting adequate bank loans for meeting their working capital requirements.
The cap on these loans should be removed and credit should move more freely, he said.
The plastic industry has an annual turnover of Rs 90,000 crore and produces over 90 lakh tonnes of plastics. The association represents 50,000 units spread across the country.
The industry is also facing competition from manufacturers in China and Thailand, Behda added.
They are dumping their cheap goods in the Indian market. The Centre must immediately levy a 20 per cent duty on finished plastic goods, he said.
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