Packaging industry suffers a set back due to increasing prices of raw material prices

Expenditure increase by 65 per cent in a year and a half

Aurangabad, Oct 23:

The packaging industry in the district that was already in crisis after a global lockdown, subsequent shortage of raw material and a 45 per cent increase in raw material prices, is now facing an additional 20 per cent increase in costs due to shortage of coals, chemicals, increased freight and electricity tariff hikes in the last 20 days.

In particular, the government's decision to raise the GST rates from 12 to 18 per cent instead of reliving the situation has created a crisis for industrialists in the sector. Corrugated box industry as well as 200 small and medium packaging industries in the district are facing difficulties due to the price hike.

These boxes are used for packaging of vehicles, electric and electronic goods, fruits and other materials. It is also heavily exported from the country. In Aurangabad, at least 10,000 tons of packaging is produced by the industries per month. Over a thousand workers depend on the industry. But last year's lockdown and its aftermath have made it difficult for the industry to get raw material and paper. In particular, the district is in dire need of these boxes for packaging fruits and automobiles. Basically, the price of paper needs to be reduced by 25 per cent. Today, no product is sold without good packaging. As the cost of packaging has gone up, the common man has to bear the cost of every item. The industrialists have demanded to reduce the price of raw material and paper to provide some relief in the rising inflation.

Central government must take steps

The packaging industry is in crisis and it is important for the Central government to take steps to reduce paper prices. Just as the government provides assistance to farmers in times of crisis, compensates them in times of calamity, so it is necessary to provide assistance to industrialists in times of crisis by implementing subsidy and interest waiver schemes, said Mahendrakumar Sahu, industrialist, Shyam packaging industries.