Price has increased by 15-20 % in the past two weeks
CHENNAI: After food items and fuel, it is now the turn of daily-use plastic products to cost more owing to escalating prices of raw materials.
Traders of plastic products in the city said that there has been a 15-20 per cent increase in the price of plastic consumer goods over the past two weeks.
A. Satish, a wholesale trader at Park Town, said that while the increase is marginal in small plastic items such as mugs and soap boxes, larger items such as tubs, water pots and buckets cost more.
A 25-litre capacity plastic bucket now costs about Rs.100 at retail shops.
The wholesale rate is Rs.78 against the price of Rs.69 a fortnight ago. Similarly, tubs that used to cost Rs.65 – Rs.75 are now priced at Rs. 75 – Rs. 80, he said.
No drop in sales
Plastic product traders attributed the price rise to increasing price of raw materials. However, sales have not been largely affected so far, they said.
Members of Tamil Nadu Plastics Manufacturers’ Association said the price of the products may further go up as raw material cost is expected to rise.
Key raw material
There has been an increase in the cost of polypropylene, a key raw material, by Rs.22 a kg in the past one month. The price has gone up to Rs.102 from Rs.80 a kg.
N. Swaminathan, member of the association, said that there were about 3,000 plastic processing units in the city.
While the spiralling cost of crude oil was partly the reason for the price hike of plastic goods, the monopolistic trade practices of the raw materials manufacturers also contributed to the problem. However, there was enough raw material in the country, he said.
The price hike was more of a chain reaction as the processing units have little option than to increase the cost to offset their production cost, Mr.Swaminathan added.
The association had recently made representations to the Central government to reduce taxes and also protect the processing industry from the monopolistic trade practices of raw materials manufacturers.