Press Industry calls for a balancing act while implementing quality control orders on plastics and polymers

Stakeholders emphasised that, even as regulatory simplification drives ease of doing business, Quality control measures are equally important to ensure product quality and supply security, as well as long-term competitiveness for manufacturing in India.

Background and Industry Perspective

The Quality Control Orders were introduced earlier to bring India in line with global polymer manufacturing standards and reduce the flow of sub-standard material.

Now, new guidance indicating that these orders should be revisited has sparked further conversation in the industry. Industry stakeholders, however, say any decision on QCOs needs to factor in current market dynamics, the industry's capacity, and how quality assurance can help in the realisation of India's vision of being self-reliant industrially.

Supply, Demand, and Market Diversity

India's demand for polyolefins - HDPE, LDPE, LLDPE & Polypropylene has been growing at over 8% CAGR against the GDP growth. This, experts point out, speaks to a robust and steady supply of raw material for domestic processors.

Polymer imports were also in the same range and fluctuated with global market demand trends and temporary capacity increases, such as HPCL-Mittal Energy Ltd (HMEL). Industry participants say QCOs have not limited supply, and domestic production remains competitive.

India's polymer industry is quite diverse as well, with private players such as Reliance Industries Ltd, Haldia Petrochemicals Ltd, and Nayara Energy contributing to some 45% of capacity, while the rest comes from public sector undertakings (PSUs) and joint ventures. That diversity, stakeholders argue, helps to maintain healthy competition and stable pricing.

Supporting MSMEs and Downstream Industries

The MSME processors that constitute the backbone of the plastic and packaging industry in India rely on secure domestic supply chains. Too much reliance on imports, stakeholders warn, could expose them to the volatility of currency markets, extended lead times, and pricier logistics.

The availability of certifiable local raw materials stabilizes operations for MSMEs and supports India's downstream manufacturing ecosystem, they argue.

Podcasting as part of the global context and the role of standards

The global petrochemical market is also experiencing overcapacity, mostly with Chinese new capacities and highly competitive pricing in all product groups. Under such a situation, a lack of robust quality control mechanisms might make the Indian market more vulnerable to low-quality material, impacting product and vowing standards in cornerstone sectors such as automotive, healthcare, packaging industry, and consumer goods.

Call for Continued Dialogue

The industry is keen to work with policymakers to further shape a regulation that will balance these two objectives, they said.

"As long as we use a consultative and evidence-based approach, it should help remain competitive and protect the quality in India," said a leading industry representative. "India's polymer industry is well aligned with the country's goals of making Make in India and Atmanirbhar Bharat through responsible, high-standard manufacturing."

Looking Ahead

The sector feels that it can help ensure that India's journey towards a sustainable quality-led growth in the petrochemicals is not endangered, through a balanced and calibrated assessment of QCOs on supplies, global trends, and MSME sensitivities.

"Policy stability and quality benchmarks are a must for long-term growth," another industry official said. "Through dialogue and partnership, India can emerge as a reliable global manufacturing hub."

So, in brief: the industry is supportive of ongoing consultation that will ensure India's polymer industry is competitive, quality-based, and globally aligned for everyone up and down its chain - from producers to processors to consumers. (ANI)