Essential commodity status urged as polymer supply disruption strains India plastics sector

The Indian Plastics Federation, or IPF, urged the Centre on Monday to classify plastics as an essential commodity. The appeal followed supply disruptions and price jumps in polymers linked to the West Asia crisis. IPF said processors were facing steep input costs and uncertain deliveries. The federation said this was affecting operations and cash flows across the plastics chain.

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IPF said polymer raw material rates had climbed by 50–70 per cent in recent weeks. The body flagged irregular availability, longer lead times and higher logistics bills. IPF also reported a shortage of LPG, which several processing units use. It said these issues together were creating a major supply and cost shock for manufacturers.

Plastics essential commodity demand amid polymer supply shock

In a webinar, IPF President Amit Kumar Agarwal said the disruption went beyond routine fluctuations. "This is not just volatility-it is a structural disruption and price and supply shock impacting the entire plastics value chain, putting severe pressure on costs, supply and working capital, especially for MSMEs,\" Agarwal said. IPF linked the stress to supply breaks and rising prices.

Agarwal said plastics were now important for food, healthcare, packaging and infrastructure. IPF said essential commodity status could help keep supplies moving during market stress. The federation argued this step would reduce interruption risks for key sectors. IPF also said stable access to polymers was needed for smoother planning and production.

Plastics policy request includes duty relief and stable supply

The federation welcomed the governments move to cut duties on major polymer products. However, IPF asked for duty exemptions on polymer imports to continue for six months. It also urged the government to advise domestic petrochemical companies to keep supplies steady. IPF said predictable supply would help firms manage costs and reduce uncertainty.

IPF Honorary Secretary Saurabh Garodia said companies needed to adjust to changing conditions. \"The current crisis demands agility, collaboration and adaptive supply chain strategies. Stakeholders must work together to manage risks and sustain growth,\" Garodia said. IPF said joint planning could help limit disruption and support continuity across the sector.

Established in 1958, the Indian Plastics Federation represents the plastics industry and seeks supportive policy measures. IPF said the present West Asia-linked disruption had affected prices, supply timing and fuel access. The body said essential commodity status, extended import relief, and steadier domestic supplies could ease pressure on units, especially smaller firms.

With inputs from PTI