Plastic manufacturers flags raw material price surge, alleges cartelisation

The Tamil Nadu and Puducherry Plastic Producers Association (TANPPA) has reported a sharp rise in prices of essential raw materials, alleging that the functioning of a major cartel is restricting supply. The association called on the government to intervene and stabilize the situation.

“The price of Low Density Polyethylene (LDPE) has increased from ₹110 per kg in March 2026 to ₹171 per kg now. They say this is due to war,” said G.Sankaran, President, Pondy Plastic Association (TANPPA) Tamil Nadu. “The price of Linear Low Density Polyethylene and High Density Polyethylene has also increased. The cost of both increased from ₹100 to ₹165/kg,” he added.

He pointed out that large plastic raw material producing companies should supply raw materials directly to plastic product manufacturers through their authorized stockists in important cities. “Large manufacturing companies should in no case sell raw materials in bulk to traders and middlemen. Because traders buy hundreds of tons of raw materials in bulk, creating artificial scarcity in the market and increasing prices through black market practices,” he explained.

The association said that the government should ensure uninterrupted supply of raw materials to such units so that production can continue without any disruption. They also demanded complete exemption of 18% GST on waste plastic and recycled plastic products.