The plastic industry is working with the Government to prepare a negative list that would restrict duty-free imports from countries that have free trade agreement with India.
The initiative comes after the industry appraised Ananth Kumar, Union Minister for Chemicals and Fertilisers, on the perils of large scale finished plastic products imports into the country.
Speaking to Business Line, Raju Desai, Chairman, PlastiVision India and past-President of All India Plastic Manufacturers Association, said this is the first time ever a Union Minister along with his secretaries met representatives of the industry to understand its grievances and directed it to submit a list of demand in 10 days.
It is a pity that India, which exports 2.5 million tonnes of polymers (a key raw material for making plastic products), is a major importer of finished products from other countries, he said.
Import duty revision
The industry wants the Government to double import duty on finished plastic products to 15 per cent. Unfortunately, the export duty on polymers and import duty on finished products are pegged at the same level of 7.5 per cent, he said.
To top it all, he said, plastic products are being dumped duty-free from countries such as Thailand, Vietnam, Singapore and Malaysia that have signed free trade agreement with India.
Upgradation fund
The industry has also sought technology upgradation fund of ?20,000 crore for five years.With an additional capacity of one million tonnes of polymers going on stream in next one year, the upgradation fund will help the industry focus on value added finished products.
“The fund would not only restrict export of energy-intensive polymers but also bring down import of finished plastic products,” said Desai.
Source:- thehindubusinessline.com
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