Plastic goods turn costlier in India amid West Asia tensions

The ongoing conflict in West Asia is beginning to affect India’s plastic industry, with traders in the Uttar Pradesh city of Saharanpur reporting a sharp rise in the cost of both raw materials and finished plastic goods.

Local traders say the surge in crude oil and natural gas prices has increased the cost of producing plastic products. As a result, the prices of everyday household plastic items such as bottles, buckets, chairs, and toys have risen by nearly 30 to 40 percent.

According to Rishi Kapoor, plastic businessman, "The conflict between Iran and Israel has had a major impact on the plastic industry. Oil and gas prices have increased, which has affected production. The cost of raw materials has risen by at least 30-40 percent. Many oil and related materials come from Iran, and gas pipelines are also connected through Iran. Because of this, the plastic industry is severely affected. Market prices have increased by around 30 to 40 percent."

Toy sellers say the spike in the price of raw materials has forced them to raise the prices of finished products, creating concerns for both traders and customers.

Arpit Mittal, toy seller, says, "If we talk about raw materials, the rates of raw materials have doubled. As a result, the prices of finished goods of toys have increased by at least 25 to 30 percent. The rates of all plastic-related items, including toys, have gone up, and this is expected to cause significant difficulties for traders."

Plastic traders explain that crude oil and natural gas are key components used to produce plastic granules, which are widely used as raw materials in the manufacturing of plastic goods.

Most of these materials are imported from West Asia and have recently become more expensive due to rising energy prices.

Manufacturers say the surge in input costs has also led to uncertainty in the market, with many traders hesitant to purchase large quantities of goods.

Aaradhya Bansal, plastic goods manufacturer says, "Crude oil is imported here, and because of (the disruption in supplies) the price of polypropylene (PP) granules has been significantly affected. There has been a price hike of at least 30 percent. PP granules are widely used in many products, especially in fabrics and other plastic-based items, so the prices of those products are also increasing. Since the market is currently unstable, many traders are uncertain about whether they should buy goods or not, and sales have also dropped sharply.”

Traders in Saharanpur say they are hopeful that crude oil and natural gas prices will stabilise soon, which could help ease pressure on the plastic industry and restore normal market conditions.