COMPETITIVE · MARKET STRUCTURE · INDIA
Polymer producers raise prices
Change
Polymer producers implemented five price increases between March 1–11 totaling about 59%, after which plastic processors raised product prices by nearly 50% and an estimated 20–25% of Kerala's plastic processing units halted operations.
Why it matters
Kerala has more than 1,000 micro, small and medium plastic processing units, with an estimated 20–25% currently not operating due to capital shortages. Polymer producers raised prices in five rounds between March 1–11, producing cumulative hikes of about 59%. Plastic processors responded by increasing product prices by nearly 50%. Both private and public sector polymer manufacturers raised prices by similar margins regardless of feedstock. Packing-material costs were reported up 25–50%, and most footwear soles were identified as polyethylene-based.
Implications
- · Local processing capacity is reduced as approximately 20–25% of Kerala plastic processors are offline.
- · Packing-material procurement costs have increased, with reported rises of 25–50% for packaging inputs.
- · Some manufacturers signalled potential product-price increases, with one citing a possible 15–25% rise and another citing a possible 30–40% rise.
Who is affected
- · FMCG manufacturers
- · Footwear manufacturers
- · Healthcare-equipment manufacturers
- · Micro, small and medium plastic processors
Source
Topics
Business & Markets Markets Supply Chain & Logistics Manufacturing