Due to the joint attack on Iran by the United States and Israel, the global supply of crude oil has been disrupted, directly and severely impacting the plastic industry across India, including Gujarat. Over the past 20–25 days, units producing plastic granules have continuously increased prices, resulting in a massive surge of 50% to 70% in plastic raw material costs. Granules that were previously priced at ₹100 per kg have now risen sharply to ₹150–₹170 per kg.
This sudden price hike has pushed the plastic industry into a crisis-like situation, almost like being in an ICU. Small and medium enterprises (MSMEs) are especially struggling, as such high investment has become unaffordable, leading to halted production in many factories.
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The rise in raw material prices has severely affected manufacturers of auto parts, machinery components, toys, and plastic bottles. Those with pending orders are facing heavy losses due to increased input costs. Additionally, disruptions in shipping and a 200% rise in freight charges have led to cancellation of export orders.
Considering the seriousness of the situation, the Gujarat State Plastic Manufacturers Association has urged the government to reduce GST from 18% to 5%, provide interest relief, and introduce a new plastic policy to help revive the sector.
