I wish to express my heartiest greetings to my esteemed fellow members and colleagues at AIFTMA, the National Association of Indian PP/HDPE –Plastics Woven Sack (PWS) Industry, and thank them for their continued kind cooperation and assistance extended to me during my current tenure as the President of AIFTMA.
The period of over two years-that has gone by- has been one of the most difficult ones in the history of our industry. In this period, the industry has faced constantly the impact of rising raw materials prices, further hit by the increasing interest costs and constantly being hit with lowering of selling prices thus reducing the value addition to the lowest levels this industry has ever experienced. However, some of the following recent developments have marked a new beginning for our industry:
- Fresh supply orders expected to be released for PP/HDPE Woven Sacks, ISI marked, as per IS: 14887 – 2014; after these orders are placed, in all probability, these will be gradually increased.
- Further demand of PWS will come to cater the demand of packaging for Food commodities under the Food Security Bill.
- Import of Jute Bags under JPMA likely to be discouraged by Government of India
- Import of PWS from Nepal under Free Trade agreement likely to be discouraged by Government of India.
- Raw material prices are currently at an all time low.
Accordingly, I wish to appeal to all of you that since the rates for the supply of plastics woven sacks have been finalised in DGS&D –under the Rate Contracthave been accepted by the Industry, and the price differential between the PP Granules & Fillers are on a minimal basis, as such we should collectively adopt a policy to strictly follow the norms and specifications, as finalised by the Government of India under the Rate contract for supply of bags for packing Food Grains and accept the orders only for that much quantity which can be conveniently supplied within the indicated time-frame, so as to ensure and facilitate smooth execution of the supply orders, in the interest of all concerned. In this way, we would be able to once again endeavour to enhance the prestige of our Industry.
For the other sectors, like Cement, Fertilizer, Sugar etc. are concerned, in the last five years, the margins have been squeezed to such an extent that many of our members have closed down their industrial units, and/or in many cases, these units have fallen sick; in some cases, the industrial operations have continued by using higher quantum of fillers, thus allowing themselves to momentarily gain on the costs of raw materials, which has however, adversely affected the quality of the finished product. Consequently, in some cases, with heavy quality rejections, the product supply has been made unviable.
Since, the customer base for PWS is very limited, it has made the future of the industrial operation of our industries look dismal; thus our industry has had to face the present situation.
I therefore wish to make a humble request to all of you to adopt a motto that no one from our industry will compromise on the quality specification of our buyer and thus will strictly follow and observe the accepted product mix for making the final products, as per the specifications detailed in the supply order. It is further observed that while doing so, our industry should undertake to sell our products on most competitive prices so as to meet the competition, and while doing so, should earnestly endeavour not to compromise on the product specifications as laid down by the buyers.
I am very much sure that if we can approach our buyers, with the above objectives, they will, in due course, favourably compensate us after receiving the satisfactory supplies of high quality finished products, at the most competitive prices, and after they have availed of the economies of scale with the lowering of the raw material prices; thus reducing their burden on the input packing cost.
In the end, I once again humbly reiterate my appeal to all of you to immediately adopt the policy of strict adherence of customers’ specifications, in all sectors and market your products on most competitive prices without any compromise on the quality parameters in any case.
Should you need any further assistance and clarity in respect of the above, our Secretariat and its dealing experts, on the subject could provide you the needful support so as to ensure that you are able to successfully discharge your due obligations under the various governmental supply orders. You may also refer to my similar message last Diwali.
With seasons’ greetings and kind regards,
Shri. Bishnu Kumar Agarwal