Plastic Industry Production Declines in Banke Due to Raw Material Shortages Amid Middle East Tensions

Banke. Production in plastic-based industries operating in Banke is declining due to a shortage of raw materials.

Kamal Karki, Associate Member of the Nepalgunj Chamber of Commerce and Industry and Managing Director of Star Poly Pipe Industry, informed that production has decreased, and some industries are on the verge of closure because the raw materials needed for the industry are scarce due to escalating tensions in the Middle East Asia. According to him, traders are suffering as the import of raw materials has decreased.

The price of raw materials in the international market has increased by 40 percent. The raw materials imported by Nepali industries are not being supplied according to demand. Currently, a shortage of plastic 'pellets' (dana), the raw material used most in plastic-based industries, has begun.

The crisis in plastic and packaging industries has deepened due to the unavailability of plastic pellets after the import of raw materials came to a halt because of the tension in the Middle East. Industry insider Karki stated that the production of items such as water bottles, bottle caps, pipes used for drinking water and building construction, motorcycle helmet companies, plastic chairs, plastic for packaging, and cartons has been affected.

"Our production is decreasing because raw materials are not arriving," he said. Industryist Karki mentioned that production has also decreased following the halt in the import of raw materials. With the decrease in production, problems have also emerged in operating the industries. Raw materials related to petrochemicals usually enter Nepal from third countries via India. However, Chiranjivi Oli, Senior Vice President of the Nepalgunj Chamber of Commerce and Industry, stated that Nepali industries are in crisis because India has tightened exports to prevent shortages in its own market.

According to him, the shortage of petrochemical-related raw materials is now affecting not only plastic products but also the production of daily consumer goods. If the international situation remains the same, its impact will deepen further.