The plastics processing sector has urged the government to streamline the supply of raw materials as the industry is grappling with raw material shortage which will lead to the closure of many units across the country.

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"The industry is facing acute shortage of polymers, the main raw material for plastics goods production, which has varied application in nation-building including agriculture, healthcare, food and toy sector," All India Plastics Manufacturers Association (AIPMA) President Chandrakant Turakhia said in a statement.

The lack of raw material availability has pushed prices by almost 60 percent in the last six months and their processors they are also saying that prices in the grey market are higher by 15-20 percent because of a shortage of these raw materials.

Globally, there has been a supply squeeze because of shutdowns that we saw in the US and because of the cold wave in Texas and that is putting a lot of pressure on the raw material prices.

CNBC-TV18’s Sonal Bhutra has more details.

(Edited by : Abhishek Jha)

First Published:Mar 3, 2021 1:00 PM IST