Ahmedabad: The Gujarat State Plastic Manufacturers’ Association (GSPMA) has raised alarm over mounting challenges faced by the plastic industry amid the ongoing West Asia conflict, citing severe disruption of global supply chains and a sharp rise in raw material costs. The association said polymer prices have surged by up to 65% in the past month, placing enormous financial stress on manufacturers, particularly micro, small and medium enterprises (MSMEs).GSPMA president Anish Patel said the combined impact of erratic pricing and supply uncertainty has pushed many small units to the brink. “A large number of small-scale units have halted production as raw material prices have shot up sharply within a short period. This threatens business sustainability and employment,” he said. Patel urged govt to provide immediate relief, including enhanced working capital support, to help MSMEs survive the crisis. According to the association, the industry is grappling with unpredictable price fluctuations, irregular availability of polymers, and extended delivery timelines. These factors have disrupted production planning and severely strained working capital cycles, making it difficult for manufacturers to meet operational expenses. Kaumil Patel, a city-based manufacturer, said urgent policy intervention is required. “There is a need for a price stabilization mechanism for polymers, interest-free loans, higher working capital limits, rationalization of import duties and temporary relaxation in statutory compliances,” he said. GSPMA has also appealed to govt to promote domestic production of polymer raw materials and relax norms to allow greater use of recycled plastics to address acute shortages. The association warned that without timely support, prolonged disruptions could have long-term consequences for Gujarat’s plastic manufacturing sector.
