Plastic bags, foam, bubble wrap prices up 50% due to higher input costs & supply constraints

Pune: The sharp spike in raw material costs for plastic packaging has affected kirana stores, restaurants, bakers and several consumer-facing business owners.“Prices for the plastic that we use to pack chikki are up by almost 50% per bag. There is no alternative material we can use, so we have to buy it. We will be passing on the price hike to consumers if prices don’t go down,” Ramesh Kumar, a chikki seller in Lonavala, told TOI.Bakeries are also feeling the heat. “Every item we manufacture is packed in plastic for reasons of hygiene and convenience, from bread to biscuits. We buy thousands of kg of bags a month from suppliers. We will now see if we can replace some bags with paper packaging,” said a baker from Camp, choosing anonymity.Rising global crude oil prices have pushed up rates of key polymers such as polyethylene (PE), polypropylene (PP) and PET, against the backdrop of the West Asia conflict.”Since most plastic packaging materials are petroleum-derived, we are seeing immediate price rises for plastic bags, bubble wrap, foam tarpaulin and other plastics for industrial use. Our suppliers have raised prices by 40-50%. We have no option but to pass these costs on to consumers,” said Prashant Thakkar, who runs Siddheshwar Trading in Pimpri Chinchwad.These are difficult times for the industry, agreed Hasmukh Shah, owner of Arihant Plastics in Shukrawar Peth. “Plastic bags that were available at Rs150 per kg have gone up to Rs200 per kg. Consumers are buying less or only as much as they need. There is slower buying from business-to-business (B2B) clients, too,” he said.Plastics manufacturers said they are seeing a 30-40% slowdown in orders due to costlier products. Umang Gupta, owner of MK Plastics, a plastic bags manufacturer in Pimpri Chinchwad, said, “Customers are in wait-and-watch mode as plastic prices are 50% higher now.” Supply constraints have also made it harder for manufacturers to secure raw materials.“Restaurants use a lot of plastic packaging material for food deliveries and prices of everything used has shot up, from bags to cutlery. Not all restaurants are passing on the hikes to customers as of now,” said Saili Jahagirdar, owner of Zillionth Bistro and Pune chapter head of the National Restaurant Association of India (NRAI).Sharmila Jain, who runs a corporate and bulk gifting company, said that prices per hamper have gone up by almost Rs50 because of higher packaging costs. “We use bubble wrap, plastic bags and even foam sheets to pack hampers for weddings and corporate events. We have had to pass on the price hikes to clients as things are not going to get any cheaper soon,” she said.