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Efforts on to promote plastic exports to US

Our Bureau

CHENNAI, Sept. 2

THE Commerce Ministry, through the Plastics Export Promotion Council (Plexconcil) sponsored by it, is looking at expanding plastic exports to the US over the next three years, according to Mr S. Ramasundaram, Joint Secretary in the Ministry.

With a market of $5 billion, the US was the single largest market for plastics. India's global export was about $700 million which was just a fraction of its potential. Even the targeted growth rate of 20 per cent per year, over the next five years, woul d only scratch the surface, he said.

Under the market access initiative outlined in the latest Exim policy, the Commerce Ministry will consider fund deployment for efforts to enhance exports, and a project report was under preparation to enable this, he said.

Mr Ramasundaram said that the other area of concern was the increasing threat of anti-dumping measures to block Indian exports. Chemicals and plastic exports were among the most affected. While the Government was fighting back, it was an expensive proces s, he said.

Mr Mahesh K. Shah, Chairman, Plexconcil, said that plastic products exports were expected to be around $714 million during the current year. Though this would mean a 20 per cent increase over last year, it only equalled the export in 1998-99. Further, ex cept for moulded items, most of the exports was of raw materials rather than value added items. Finished goods export had declined, he said.

India manufactures over seven million tonnes of polymers but exports 50 per cent of this raw material, unlike China which fully utilises its raw materials for manufacturing and exporting value added products. Specified areas of growth would have to be ta rgeted, and Plexconcil had identified the US as a major area for expansion and had submitted a programme for Commerce Ministry's assistance, he said.

The council had compiled detailed market information and a domestic database of manufacturers and exporters. It would consult manufacturers to assess the reasons for the drop in export of finished goods and the measures to increase exports, Mr Shah said.