The Hindu Business Line : Plexconcil to prepare study for plastic park

The Plastics Export Promotion Council (Plexconcil) has been commissioned by the Department of Chemicals and Petrochemicals to carry out a feasibility study for development of plastic parks/clusters in India.

Speaking at an interactive session on “Export potential of plastic products from eastern region”, organised by the council here on Friday, Mr Nemish J. Sayani, Chairman of Plexconcil, said cluster formation was a strategy for capacity-building to service both the domestic and world markets.

Talking to newspersons later , he said the council was in the process of evolving a “systematic export promotion strategy” for plastic products’ exports — a strategic plan in the short and the long term. He, however, cautioned exporters that “while we always zero in on China as our major competitor, there were also some other strong, competing Asian tigers — much smaller than us in many segments of the plastics industry”.

Pointing out that plastic products exports during 2006-07 was around $3.18 billion against a target of $3.45 billion, he said in the current year, the appreciating rupee was having an adverse effect on plastic product exports .

Suggesting that the industry, particularly in eastern India, needed to identify the niche markets and products to overcome the negative overtones built into our systems, Mr Sayani sought inputs from the members on a continuing basis.He said during the April-October (2007-08) period, a negative growth of 15 per cent has resulted, pushing down plastic products exports to Rs 7,256 crore against the Rs 8,057 crore in the corresponding period of 2006-07). Commenting on market development, already identified as a priority area, Mr Sayani said the council was now determined to implement a programme under the MAI (Market Access Initiative) Scheme of the Department of Commerce to tap the vast potential of plastic consumer items in USA. He said the programme would commence with the setting up of a display centre in the Los Angels area.

Asked about on his Union Budget wish-list, the council Chairman said he has urged the Government to free the EEFC (Exchange Earners’ Foreign Currency) account so that exporters can make free use of the balances for investments, fixed deposits and other essential requirements.

He, however, cautioned that exporters too have to educate themselves about the various tools available for effective foreign exchange management to cover the inherent currency risks and optimise rupee realisation.

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